TMI Blog1979 (6) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... ing in the name of the wife which had been acquired with the aid of the cash given by the assessee had not been considered in the net wealth of the assessee. The WTO took into account the decision of the Tribunal dt. 28th Nov., 1973 made in ITA No. 4610 (Gau) of 1971-72 in the IT proceedings for the assessments Year 1963-64 and added the value of the building treating it as the asset of the assessee. In the assessments yrs. 1964-65 to 1997-68, also the WTO included the value of the house property at Calcutta in the light of the decision of the Tribunal mentioned above. It is pertinent to note at this point that in the IT assessments. The income arising from the Calcutta house property was added to the total income of the assessee on the gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubramaniam (108 ITR 538) where differing from the judgment of the Bombay High Court relied on by the AAC, the addition of the value of the converted asset was upheld. 5. On the other hand, it was contented on behalf of the assessee that in the IT proceedings the assessee was agitating the question as to the point whether the cash given to the wife was a loan or not and, therefore, even the re-opening under s. 17(1)(A) was invalid since it was based only on a change of opinion. Secondly, it was contended that in the IT proceedings it had been held that what was transferred was only the cash and the property acquired there-with by the wife cannot be regarded as an asset indirectly transferred to the wife. Thirdly, it was contented that s.4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the spouse to whom such assets have been transferred by the individual, directly or indirectly, otherwise than for adequate consideration. The first question, therefore, is whether the house property acquired by the wife could be considered as an asset directly or indirectly transferred to the wife by the assessee otherwise than for adequate consideration. Admittedly, it was not an asset which was directly transferred because what was transferred by the assessee was only the cash. As far as the question of indirect transfer of that asset is concerned, we must go by the decision of the Supreme Court in the case of Keshavlal Lallubhai Patel (2), where it was explained that the word "indirectly" did not destroy the significance of the word "tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assets which were originally transferred. We notice that the Madras High Court has specifically dissented from the view of the Bombay High Court. It has been held by the Supreme Court in the case of Vegetable Products Ltd.(4), that if the language of a taxing provision is ambiguous or capable of more meanings than one that which favours the assessee has to be adopted. Therefore, we are of the opinion that the AAC was right in following the decision of the Bombay High Court in holding that only the debit balances in the books of the assessee on the valuation dates representing funds transferred could be included under s. 4(1)(A) of the Act. 9. The assessee has contended in the cross objection that even the re-assessments were not validly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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