9911796707
TMI Blog1967 (3) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... esponding accounting year was the financial year ending 31st March, 1957, the assessee claimed that the amount of ₹ 6,045, which represented the income of the property conveyed by him in trust for the benefit of his nephew, should be excluded from his income. The Income-tax Officer refused to do so on the ground that the said income would be liable to be included in the assessee's assessment under the provisions of section 16(3)(a)(iv) of the Income-tax Act. The Appellate Assistant Commissioner agreed with the view taken by the Income-tax Officer and dismissed the assessee's appeal. In the further appeal to the Tribunal, however, the Tribunal held in favour of the assessee that the income was not liable to be included in the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act: "Whether, in the facts and circumstances of this case, the sum of ₹ 6,045 being the income from Bank Street property subsequent to September 27, 1956, could be assessed in the hands of the assessee under section 16(3)(a)(iv) of the Act?" In our opinion the answer to the question must be in the negative, though not for the reason given by the Tribunal in its order. The view taken by the Tribunal cannot be sustained in the light of the Supreme Court decision in Commissioner of Income-tax v. C.M. Kothari([1963] 49 I.T.R. (S.C.) 107.), where in dealing with the provisions of section 16(3)(a)(iii) in relation to cross-transfers of almost equal value by a father and son in favour of each other's wives, it was hel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the benefit of his wife or a minor child or both." It will, however, be seen that in this provision the words "directly or indirectly" in relation to the transfer, which were used in sub-section (3)(a)(iv) of section 16, are omitted. Consequently, it is not possible to avail of this provision in the case of indirect transfers effected by cross-transfers as in the present case. On the wording of this provision, it can apply only to the income of the assets, which are transferred by the assessee to the trustees for the benefit of his wife or minor child. In the present case the income has arisen not from the assets, which are transferred by the assessee in trust for the benefit of his minor son, but from the property which h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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