COMMISSIONER OF WEALTH TAX Vs. RATHORE A S

JUDGEMENT

(1.) THE above four references are disposed of by this common order since questions of law are common.

(2.) REFERENCE No. 21 of 1982 pertains to the assessment years 1972 -73 to 1975 -76 and arises out of the order of the Tribunal dated December 19, 1981. REFERENCE No. 67 of 1982 pertains to the assessment year 1972 -73 and arises out of the order of the Tribunal dated July 10, 1981. The question which has been referred for the determination of this court is: Assessment year 1972 -73 :

(3.) IN CIT v. Prem Bhai Parekh [19701 77 ITR 27, which was also referred, the apex court has observed that Section 16(3)(a)(iii) of the INdian INcome -tax Act, 1922, created an artificial income. That section must receive strict construction. The connection between the transfer of assets and the income must be proximate. The income in question must arise as a result of the transfer and not in some manner connected with it.