TMI Blog1963 (3) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... hase of the house at first was intended to be in the names of the three partners of the firm. It is difficult to see why the ladies were named as the vendees if they did not have sufficient funds of their own. They could only buy the property if someone gave them the money. It is reasonable to infer from the facts that before the respective husbands paid the amounts, they looked up the law and found that the income of the property would still be regarded as their own income if they transferred any assets to their wives. - Appeals Nos. 34 to 36 of 1962 - - - Dated:- 26-3-1963 - DAS, S.K., SARKAR, A.K. AND HIDAYATULLAH, M, JJ. For the Appellant: K. N. Rajagopal Sastri and R. N. Sachthey For the Respondent: R. Gopalakrishnan JU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 28,333-5-4. Mrs. C. M. Kothari further paid a cheque of Rs. 1,800, and Mrs. D. C. Kothari paid another cheque of Rs. 1,600. Thus, the two ladies paid one-third share of Rs. 85,000 and the amounts which were respectively paid by their husbands as part of the earnest money. H. C. Kothari was debited with a further sum of Rs. 28,333-5-4. In this way, Mrs. C. M. Kothari paid Rs. 200 more than the other two, because her husband had previously paid Rs. 200 more than his sons. The share of the three vendees was, however, shown to be one-third each. The ladies issued the cheques on their accounts into which were paid by the firm certain amounts by cheques. Into Mrs. C. M. Kothari's account was paid an amount of Rs. 27,000 which was debited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the year and there was no occasion to give a birthday present to her several months later and on a date coinciding with the purchase of this property. The Income-tax Officer also found that in the past, the father-in-law had never given such a big present to his daughter-in-law on Diwali, and this time there was no special circumstance to justify it. The appeals of the assessee to the Appellate Assistant Commissioner failed as also those filed before the Tribunal. The Tribunal, however, did not hold that the transaction was benami but confirmed the other finding that the two ladies had acquired their shares in the house out of assets of the husbands indirectly transferred to them. The Tribunal, however, stated a case for the opinion of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the wife in the hands of the husband, if the income of the wife arises to her from assets transferred by the husband. The present case is an admirable instance of how indirect transfers can be made by substituting the assets of another person who has benefited to the same or nearly the same extent from assets transferred to him by the husband. It is next contended that even if chain transactions be included, then, unless there is consideration for the transfer by the husband, each transfer must be regarded as independent, and in the present case, the department has not proved that the transfers by the son to the mother and by the father-in-law to his daughter-in-law were made as consideration for each other. We do not agree. It is not n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded to be in the names of the three partners of the firm. No evidence was tendered why there was a sudden change. It is difficult to see why the ladies were named as the vendees if they did not have sufficient funds of their own. They could only buy the property if someone gave them the money. It is reasonable to infer from the facts that before the respective husbands paid the amounts, they looked up the law and found that the income of the property would still be regarded as their own income if they transferred any assets to their wives. They hit upon the expedient that the son should transfer the assets to his mother, and the father-in-law, to the daughter-in-law, obviously falling to appreciate that the word "indirectly" is meant to co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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