TMI Blog2001 (9) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... been referred for the opinion of this court in respect of the assessment year 1982-83: "(i) Whether, in law and on facts the provisions of section 64(1)(i) of the Income-tax Act, 1961, were not attracted for including the share income of Smt. Achalaben in the hands of the assessee, who is the father-in-law of Achalaben? (ii) Whether, when an assessee, the father-in-law of Smt. Achalaben, had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partner nor was possessing any technical or professional qualification nor was having any experience of the business nor had she made any further contribution to the share capital of the firm till financial year 1981-82, the Income-tax Officer held that there was a proximate connection between the assets transferred by the assessee to Smt. Achalaben and the income arising to her from Meera Indust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts in the instant case are similar to the facts in Prem Bhai Parekh's case [1970] 77 ITR 27 (SC) in which the apex court held that it must be established that the income in question arose directly or indirectly from the gifts in question. In the facts of Prem Bhai Parekh's case [1970] 77 ITR 27 (SC), there was no dispute that the assessee had transferred to each of his minor sons a sum of Rs.75, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sons, in the instant case the donee was the daughter-in-law of the assessee. Considering the fact that although son's wife is included in section 64(1)(vi) so as to be within the list of relatives to be hit by the clubbing provision, the Tribunal rightly pointed out that Explanation 3 to section 64(1) only covered at the relevant time the assets transferred directly or indirectly by an indivi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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