1996 (1) TMI 72 - HC - Income Tax

Summary

The High Court of Madhya Pradesh ruled in favor of the assessee, stating that the share of profit from Shiv Shankar Soap Factory belonging to the assessee's wife was not includible in the assessee's income under section 64(1)(iii) of the Income-tax Act. The court found that the income did not arise from assets transferred by the assessee to his wife, as the capital contribution was not a requirement for becoming a partner in the firm. The decision was based on the lack of evidence showing any investment by the wife in the firm.