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Section 4 of the Income-tax Act, 1961 - Income - Chargeability of - Whether for assessment years 1970-71 and 1971-72, amounts received by assessee - Rajmata as 'hath kharch' from Maharana, her son, out of his privy purse, would not be assessable in her hands, as her income - Held, yes FACTS During the previous years relevant to the assessment years 1970-71 and 1971-72, the assessee-Rajmata received certain amount as 'hath kharch' from Maharana, her son, and who was karta of the family, out of his privy purse. The department assessed the aforesaid amounts in the hands of the assessee, as her income. On appeal, the Tribunal upheld the view taken by the department. On reference : HELD Following the Division Bench decision in the case of Arvind Singh v. CIT [1986] 160 ITR 908 (Raj.), in the instant case, the said amounts received by the assessee were not to be treated as her income, liable to be assessed in her hands. Therefore, the Tribunal was not justified in holding that the amounts received by the assessee, were her income and, therefore, liable to be assessed. CASE REVIEW Rajmata Gulab Kanwar (Smt.) v. CIT[1986] 160 ITR 908 (Raj.)followed and relied upon. CASES REFERRED TO Arvind Singh v. CIT [1986] 160 ITR 908 (Raj.). J.L. Daga for the Applicant. B.R. Arora for the Respondent. ORDER 1. This is a reference under section 256(1) of the Income-tax Act, 1961 ('the Act') at the instance of the assessee to answer the following questions of law, namely : "1. Whether, on the facts and in the circumstances of the case, and on correct interpretation of law, the allowance, in question, received by the assessee was wrong application of the privy purse received by the Ruler Maharana Bhagwat Singhji of Mewar ? 2. Whether, on the facts and in the circumstances of the case, and on correct interpretation of law, the payment of such allowance was not expenditure in the hands of the erstwhile Ruler Shri Bhagwat Singhji and that such allowance is expense of Maharana Bhagwat Singhji of Mewar ? 3. Whether, on the facts and in the circumstances of the case, and on the correct interpretation of law, the allowance in question received by the assessee could be termed as income of the…

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