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TMI Blog1971 (7) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... minor son and daughters, who were born by that time, and also in favour of his wife In the process, he settled an extent of 50.05 1/2 acres in favour of his wife, Padmavathi Ammal. This settlement was effected on August 6, 1954. After the execution of the settlement deed, two children were born to the petitioner, one a male, on September 22, 1955, and another, a female, on December 4, 1959. After the birth of these two children, Padmavathi Ammal, purporting to act in her own right, executed a deed of settlement in favour of her after-born children, Rajendran and Parvathi, and under the settlement deed dated March 24, 1960, she gave away an extent of 42 acres in favour of both the children and reserved for herself the balance of 8.05 1/2 ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icultural Income-tax Officer and the Commissioner for Agricultural Income-tax, on revision, felt that Padmavathi Ammal did not have in praesenti a right to dispose of the lands in the manner she did so as to avoid the tax liabilities of the petitioner and that the extent of 42 acres, in the circumstances, should be deemed to be the holding of the writ petitioner and he be dealt with accordingly, and his composition application for the assessment year disposed of in that light. It is against this order the present writ petition has been filed. The learned counsel for the petitioner urges that, as Padmavathi Ammal, the wife of the petitioner, secured an interest over the land specified and delimited in the settlement deed dated August 6, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to what ought to be and what would be an indirect transfer coming within the meaning of the above sub-clause. There may be myriad circumstances in which an individual concerned may attempt to make such indirect transfers by legitimate means, such as the execution of registered documents or the execution of settlement deeds for love and affection, etc. But, such transactions have to be viewed with a lynx eye to find out whether it is a transaction which is attributable to the individual, though not directly but indirectly. In the facts and circumstances of this case, a husband settles properties not for valuable consideration but for love and affection, a larger extent of land, in favour of his wife. He was also careful to settle his prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x, and should be characterised as an indirect transfer made by the husband or the individual concerned otherwise than for adequate consideration. Reliance was placed upon Commissioner of Income-tax v. C. M. Kothari . Far from assisting the petitioner in this contention raised, it appears to be against the principle urged by him. The Supreme Court said that it is impossible to state what sorts are covered by the word "indirectly" because such transfers may be made in different ways. One such way is afforded by the case before me. I am satisfied that the Commissioner of Income-tax has rightly held that the transfer in question is an indirect transfer made by the petitioner, and the composition application has been rightly dealt with by the Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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