COMMISSIONER OF INCOME TAX Vs. KANCHANLAL VADILAL

JUDGEMENT

(1.) BY this reference made by the Tribunal at the direction of the High Court of Judicature at Bombay under S. 256(2) of the IT Act, 1961, the Tribunal has referred the following question of law for opinion :

(2.) THIS reference relates to 10 assessment years and arises from two common orders of the Tribunal disposing of 10 appeals of the assessee relating to his assessments for the years 1959 60 to 1969 70 excluding, however, asst. year 1962 63. One of the common orders relates to five assessment years from 1959 60 to 1964 65 and it is dt. 25th Sept., 1970. The other common order dt. 29th Sept., 1970 relates to 5 assessment years, viz., 1965 66 to 1969 70.

(3.) IN the assessments of the income of the assessee for the asst. yrs. 1959 60 to 1969 70, the ITO took the view that the gift of Rs. 1,50,000 made by the assessee amounted to an indirect transfer of his assets to his own wife and minor son within the meaning of S. 16(3)(a)(iii) of the Indian IT Act, 1922 and S. 64(iii)/(iv) of the IT Act, 1961. He, therefore, included the interest earned by the assessee's wife and the minor son on the above amounts in the income of the assessee. The particulars of such interest income treated as income of the assessee are as under :