Commissioner of Income Tax vs Mohinder Goel

Jawahar Lal Gupta, J.—The dispute relates to the assessment year 1985-86. The assessee filed the return on March 27, 1987, declaring an income of Rs. 15,610. The Assessing Officer made an addition on account of income from property and fixed the taxable income at Rs. 30,490.

The respondent-assessee filed an appeal. It was accepted by the Commissioner of Income Tax (Appeals), vide order dated November 22, 1993. It was held that the income from property could not be added to the assessee''s individual income but it was to be treated as due to the Hindu undivided family. The Revenue filed an appeal before the Tribunal. It was dismissed, vide order dated December 31, 1998. Hence, this appeal.

Mr. R. P. Sawhney, learned counsel for the Revenue, contends that the Tribunal has proceeded on the assumption that for the assessment year 1983-84, the income from the property was to be assessed in the name of the Hindu undivided family and not that of the assessee. A copy of the order passed by the Tribunal in respect of the assessment year 1983-84 has been produced by counsel to show that the assumption is wrong.

Mr. Jhingan, learned counsel for the respondent accepts that the income from the property had to be assessed in the name of two brothers. But this was to be in equal shares and not in the name of one of the brothers only. On this basis, counsel maintains that the stand of the Revenue is not correct.

The matter is of a trivial nature. However, it is clear that the income from the property had to be shared by both the brothers. Thus, the addition of the total income against the respondent was not warranted. The Tribunal''s decision to that extent was correct. The question is answered accordingly.

No costs.