Law: Income Tax Act, 1961

Section: 148,256

(a) Income-tax--Reassessment---Death of assessee---Notice---Notice issued in the name of a person who was dead---Widow of such person participating in reassessment proceedings---Defect in notice stood automatically cured---Indian Income Tax Act, 1961, S.148. Since the widow of the deceased had already participated in the proceedings, notwithstanding the fact that notice was issued in the name of the dead person, the defect in the notice stood automatically cured. (b) Income-tax--- ----Transfer of assets---Cash transferred to wife---Amount invested in firm--­Income from firm was includible in total income of transferor---Indian Income Tax Act, 1961, S.64. Assessee had gifted cash to his wife - which had been invested in a firm. The Tribunal was correct in holding that the income from the firm received by the wife was includible in the total income of the assessee. THIS JUDGMENT DELIVERED BY: A. K. MATHUR C.J.---This is a reference under section 256(1) of the Income Tax Act, 1961 (for short "the Act"), at the instance of the assessee and the following two questions have been referred by the Tribunal for answer by this Court: "(1) Whether; on the facts and in the circumstances of the case, the Tribunal was justified in holding even with the aid of section 292B of the Income Tax Act, 1961, that the reassessment proceedings were valid when the notice under section 148 was issued in the name of a dead person and was served upon a person not shown to be authorised on behalf of the legal representatives of the assessee? (2) Whether, on .the facts and in the circumstances of the case, the income of Smt. Kaushalyabai could be legally and validly included in the income of her husband, Vishandas, under section 64, of the Income Tax Act, 1961?" For the convenient disposal of this case, brief facts may be given as under: Assessment for the years 19'75-76 to 1980-81 was completed on the return filed by the assessee, Vishandas. Subsequently, the Income-tax Officer noticed that the share income of Smt. Kaushalyabai, the wife of the assessee, which was includible-in the assessee's hands under section 64 of the Act, had escaped assessment. Therefore, proceedings were initiated…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492