Law: Income Tax Act, 1922

Section: 3

Section 4 of the Income-tax Act, 1961 [Corresponding to section 3 of the Indian Income-tax Act, 1922] - Individual - Assessable as - Assessment years 1955-56 to 1957-58 - Tribunal held that income from two properties and deposits belonged to assessee in his individual capacity and not to HUF of which he was member and confirmed that it was taxable in his hands - Whether where a member of HUF takes money from joint family or utilises its funds which are in his hands as karta or manager of family, for paying off encumbrances on his self-acquired property, that act or conduct on his part does not have effect in law, of transferring title to property from individual to joint family nor it can suffice to indicate intention on his part to blend his separate property with joint family property - Held, yes - Whether in order to blend separate property with property of joint family there must be clear intention on part of person to abandon all his individual rights in respect of that property and to make it property of joint family - Held, yes - Whether on facts, since there was no evidence on record which showed any such intention on part of assessee and since funds stated to have been used for purchase of properties in question were not raised on joint family property, but were raised mainly on properties belonging to assessee himself, income arising from those properties were assessable in his hands in status of individual - Held, yes FACTS The assessee and his father constituted a HUF. The father, who was the karta was carrying on milk business and also owned some property. The assessee during the lifetime of his father had acquired property on Delisle Road, in his own name, and had also constructed a building thereon. He had income from business and property during the lifetime of his father, and was being assessed to tax as an individual. In April, 1944, his father died and he became the karta of the joint family, with his wife and his four sons. On 18-9-1944, he purchased plot No. 4 for Rs. 3,52,250. A part of the money paid for this purchase was out of his own funds. He raised Rs. 60,000 on the mortgage of his other property, and Rs. 2,25,000 on the mortgage of…

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