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TMI Blog1987 (3) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... at the instance of the Revenue, referred to us by the Income-tax Appellate Tribunal, Cochin Bench : "Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the bonus shares issued to and received by the donees in 1967, when the donees were in possession and enjoyment of the shares transferred to them by the assessee in 1961, are not assessable in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onus shares were issued to the transferees and not to the transferor. It is also true that the shares cannot be transferred otherwise than in accordance with the provisions of the Companies Act, 1956. Nevertheless, it cannot be gainsaid that bonus shares were issued on the strength of and by reason of the shares held by the transferees. Although the bonus shares were issued in the names of the tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mputing the net wealth of the transferor as and when the power to revoke arises to him. " This means that even if the asset transferred under an " irrevocable transfer ", as that expression is understood within the meaning of the Explanation to section 4 of the Act which we have considered in ITR Nos. 197 to 200 of 1979 (CWT v. Rugmini Achi [1987] 166 ITR 711) has not been retransferred to the tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reverted to the transferor on the day appointed for revocation and will be assessable in his hands as his wealth. This is the irresistible conclusion to which section 4 leads. With respect, we do not agree with the contrary conclusion reached by the Madras High Court in CWT v. T. Saraswathi Achi [1980] 125 ITR 186 (Mad). In the circumstances, we answer the question referred to us in the negative, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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