9911796707
TMI Blog1986 (12) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... ircumstances of the case, the Tribunal was right in law in holding that there was transfer of funds by the assessee to his wife for the construction of house property as contemplated by section 64 of the Income-tax Act, 1961, or not ? (2) If the answer to the above is affirmative, whether the Tribunal was justified in apportioning the income arising out of the said property in the ratio of 1 : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis, at the instance of the Revenue, the Tribunal has referred the above two questions. The first question, therefore, is, what is the amount which the assessee contributed in the construction of the house ? The Tribunal, as a fact-finding authority, has recorded a finding that the assessee contributed Rs. 34,500. Though Sri Firdos, learned counsel for the assessee, seeks to contend that only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y such individual otherwise than for adequate consideration or in connection with an agreement to live apart. A reading of the above provision would indicate that in computing the total income of the individual, there shall be included all such income as arises directly or indirectly to the spouse by such individual otherwise than for adequate consideration or in connection with an agreement to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruction of the house and Rs. 52,000 was the amount which went into the construction from borrowings made in that regard. Section 64 of the Act has no application to outside borrowings. Therefore, the proportion in which the income derived from the property is to be apportioned is 10: 34.5 : 52. Therefore, that part of the income attributable to 34.5 alone is taxable under section 64(1)(iv) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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