TMI Blog1941 (9) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... were to be held by the assessee as trustee during his life time. The deeds also provided that after his death his eldest son was to be the trustee. The assessee reserved to himself powers to revoke the settlement or to make fresh dispositions just as he deemed fit. In view of the provisions of Section 16 (1) (c) of the Indian Income Tax Act, a clause which was inserted by the Amendment Act of 1939 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... daughters on 5th April 1933, i.e., before the commencement of the Indian Income Tax Act VII of 1939, can be deemed to be income of the petitioner under revocable transfers of assets as contemplated by clause (c) of sub-section (1) of section 16 of the Indian Income Tax Act XI of 1922 as amended by the Indian Income Tax Act VII of 1939. In referring this question the Commissioner has given r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee. But it is said that the income which the Income Tax Officer proposed to tax in respect of the year 1939-40 was income which had accrued before the passing of the Amendment Act and that this makes all the difference. The learned Advocate for the assessee has laid stress on the fact that with regard to the deeds falling within the first part of the clause quoted, the Legislature has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act says that an assessee shall pay the tax in respect of the assessment year based on the income received by him in the previous year. The assessees income which the Income Tax Officer had to assessee for the year 1939-40 included the income received from the properties which were covered by the these revocable deeds of transfer. The income had actually been received by the daughters but as the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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