TMI Blog1971 (9) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... se. He died after the assessments were made. The assessment years with which we are concerned is these appeals are 1949-50, 1950-51, 1951-52, 1952-53 and 1953-54. The facts of the case lie within a narrow compass. Late Karam Chand Thapar made certain cash gifts to his wife, Smt. Mohini Thapar. From out of those gifts, she purchased certain shares and the balance amount she invested. The shares earned dividends and the investments yielded interest. The interest realised and the dividends earned were included in the income of Karam Chand Thapar for the purpose of assessment in the assessment years mentioned earlier. The assessee objected to the inclusion of that amount in his income. The question is whether the department was entitled to incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for adequate consideration or in connection with an agreement to live apart ;. . . " The assets transferred in this case is the gift of the cash amounts made by the assessee to his wife. The transfers in question are direct transfers. But those assets, as mentioned earlier, were invested either in shares or otherwise. Hence it was urged on behalf of the revenue that the incomes realised either as dividends from shares or as interest from deposits are income indirectly received in respect of the transfer of cash directly made. This contention of the revenue appears to be sound. That position clearly emerges from the plain language of the section. It was urged by Dr. Pal, learned counsel for the assessee that there is no nexus between t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fits of partnership in the firm. The question was whether the income arising to the minors by virtue of their admission to the benefits of partnership in the firm could be included in the total income of the assessee under section 16(3)(a)(iv), a provision similar to section 16(3)(a)(iii). The Tribunal found that the capital invested by the minors in the firm came from the gift made in their favour by their father, the assessee. This court overruling the contention of the revenue came to the conclusion that the connection between the gifts made by the assessee and the income of the minors from the firm was a remote one and that it could not be said that the income arose directly or indirectly from the assets transferred. Hence the income ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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