Law: Income Tax Act, 1961

Section: 256(1)

Income-tax-- Exemption-Availability of-Nexus between assessee's not living in his house and needs of his business must be proved. Some nexus between the fact of the assessee residing in a building not belonging to him and his employment, business or profession must be shown before the benefit can be claimed in respect of the residential house which is not occupied by him. Where such nexus has not been established and the who was a bachelor, lived for his own convenience with his father in the same town, the benefit will not be available to the assessee in respect of his own house which was not left vacant by him on account of compulsion of business. JUDGMENT G. P. SINGH, C. J.--,The question of law referred in this reference under S. 256 (1) of the Income-tax Act, 1.961, by the Income-tax Appellate Tribunal "Whether on the facts and an the circumstance of the case, there is justification in law to hold that the applicant is not entitled to exemption under section 23(3) (a) of the Income-tax Act, 1961 ?" 2. The reference relates to assessment years 1969-70 to 1972-73. The facts found by the Tribunal are that the assessee lives with his father in the same town where the house in respect of which the relief under section 23 (3) is claimed is situated. The distance between the two houses is two miles. The assesses is a bachelor and, therefore, for his convenience resides with his' father. The Tribunal clearly bound that it was not shown that by living in his own house the assesses…

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