1997 (11) TMI 6 - SC - Income Tax

Section 64 is attracted where it is found that the assets have been transferred directly or indirectly to the wife by the husband. But if it is shown that the transfer was for adequate consideration or in connection with an agreement to live apart, this section will not be attracted - There was no finding to show that the transfer was in connection with an agreement to live apart, so, section 64 are clearly attracted - hence income from the house property falls for inclusion in the total income

Summary

The Supreme Court upheld the inclusion of income from house property in the total income of the assessee for assessment years 1964-65, 1965-66, and 1966-67. The court found that Section 64 of the Income-tax Act applied as assets were transferred to the spouse without adequate consideration. The appeals were dismissed, and no costs were awarded. Case citation: 1997 (11) TMI 6 - Supreme Court.