PATWARDHAN H N Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this reference under s. 66(1) of the INdian IT Act, 1922, two questions arising under s. 16(3)(a) (iii) and one question arising under s. 16(3)(a)(iv) are referred to us for decision.

(2.) THE facts appear in the statement of the case. THE facts which require to be noticed are as follows :

(3.) IN the asst. yr. 1957-58, relying upon the provisions of section 16(3)(a)(iii), the income from the above immovable property and the dividends earned from these shares were included in the income of the assessee. This was continued to be done even for the assessment years 1958-59- 1960-61. Appeals filed by the assessee were dismissed by the AAC. IN the appeal before the Tribunal, it was held in favour of the assessee that he was entitled to the exclusion of the 2/3rds of the income from the immovable property transferred to his wife, in view of the fact that he had received adequate consideration for 2/3rds of the property transferred by him to his wife. It was, however, held against him that 1/3rd of the income was liable to be included in the assessee's income.