Law:

Section:

Section 4 of the income-tax act, 1961-Hindu undivided family-Assessability of-In partition between father and two sons, amounts set aside exclusively for marriage expenses of daughters-whether income earned on such amounts assessable as income of huf, consisting of said father, his wife and said two daughters-Held, on facts, no Facts At the time of partition between father and his two sons, certain sums were provided for marriages of two unmarried daughters. The ITO, however, included the income arising from said sums in the income of the assessee-HUF, consisting of father, said two daughters and their mother. The AAC sustained the said addition. The Tribunal, on second appeal, reversed the AAC's order. On reference : Held The three amounts were exclusively given to the daughters as marriage expenses before the partition and same belong to them exclusively. The said amounts, could not, after the partition, be in law said to belong to the karta. Consequently, the income earned on the said amounts was not assessable as the income of the HUF. Judgment Prem Chand Jain J.-The assessee is an HUF (hereinafter referred to as 'the assessee'). The assessment year commenced on 1st April, 1971. The financial year was the 'previous year'. The assessee derived, (i) share income from the firm, M/s. Khazan Singh Basant Singh, (ii) interest income from M/s. Basant Singh and Sons, (iii) dividend income, and (iv) bank interest. The assessment was completed by the ITO on 13th March, 1974, at a total income of Rs. 90,680 as against the declared income of Rs. 24,055 as per the original return and the declared income of Rs. 23,805 as per the revised return. Basant Singh, karta of the assessee, had during the accounting year under consideration, a wife and three daughters. The said persons during the accounting year under consideration derived incomes, namely, Rs. 24,996, Rs. 17,375, Rs. 14,033 and Rs. 13,492 respectively. The said incomes were included while computing the income of the assessee. This inclusion was confirmed, on appeal, by the AAC. On second appeal, the Tribunal found that the three amounts reserved for marriage expenses of three unmarried daughters could not be taken…

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