Commissioner of Income Tax vs Smt. Gulnar N. Marfatia

On an application u/s 256(1) of the Income Tax Act, 1961 (hereinafter referred to as the Act''), the Tribunal has referred the following question for our opinion :

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that salary of Rs. 18,000 paid to the husband of the assessee by the firm in which assessee and the husband both are partners, was not includible in her hands u/s 64(1)(i) of the Income Tax Act, 1961 ?"

At the outset, the learned counsel for the assessee submits that identical question has been considered by this court in the case of very assessee in Commissioner of Income Tax Vs. Smt. Gulnar Marfatia, wherein this court has taken the view that the salary paid to husband is includible in the hands of the assessee u/s 64(1)(i) of the Act. Considering the submissions and after perusal of audit report Nos. 2 to 6, we find no justification in the order of the Tribunal, the view taken by the Tribunal has been reversed by this court in the case of very assessee and no material facts are brought on record to depart from the view taken by us in the case of very assessee.

In the result, we answer the question referred to us in favour of the revenue and against the assessee. The reference so made stands disposed of accordingly.