9911796707
TMI Blog1986 (4) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... 61. Subsequently, the ITO received intimation to the effect that the income of one Mrs. Razia Abu Bakar Usman Khatri had to be assessed in the hands of her mother-in-law, Sakina Bai Khatri, the assessee before us. It was also further intimated that the share income of Razia Abu Bakar Usman Khatri from M/s Rangjoyt Overseas had been determined at Rs. 67,784 for this year. 2. On the basis of the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng that it was really made by Sakina Bai (the assessee) in the name of her daughter-in-law; that the said transfer had been effected after 1st June, 1973 and Razia Usman Khatri having become partner in Rangjoyt Overseas with the gifted amount, s. 64(1)(iv) was attracted. In this view, he brought to tax Rs. 67,784 as the 20% share of Razia Usman Khatri in the firm of Rangjoyt Overseas to be assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 64(1)(vi) was wrongly invoked here. That section provides that all such income arising directly or indirectly to the son's wife of an individual from assets transferred directly or indirectly on or after1st June, 1973by such individual otherwise than for adequate consideration, shall be included in computing the total income of such individual. The share income in question arose to Razia Usman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and not any other person. Counsel also points out that the authorities below had gone totally wrong in thinking that Razia Usman Khatri was not a working partner. Attention was invited to page 29 of the paper book. A copy of the deed of partnership dt.17th June, 1975under which M/s Rangjoyt Overseas was formed is available here. The business is shown as sale of printed silk fabrics, cotton fabrics ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fy the effect of Prem Bhai Parekh, but the legislature for reasons best known to it has omitted cl. (vi) of s. 64(1) from the Explanation. It cannot, therefore, be applied where the transfer is made to a daughter-in-law. Proceeding on the ratio of Prem Bhai Parekh, we have to hold that the share of profit had only a remote connection with the gift of Rs. 30,000 made a Razia Usman Khatri. It cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
