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TMI Blog1978 (8) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... shares of Changdeo Sugar Mills Ltd. and 70 equity shares of Kolhapur Sugar Mills Ltd., owned by himself, to the HUF comprising of himself, his wife and minor children. Similarly, on 11th December, 1959, the assessee " transferred " 5,000 fully paid up and 5,000 partly paid equity shares in Great Eastern Shipping Co. to the HUF. In respect of this lot of 10,000 equity shares of the Great Eastern Shipping Company, the assessee made a declaration on a stamp paper of Rs. 3; a copy of the said declaration is to be found as annexure " C " to the statement of case. In para. 1 of the said declaration the said K. J. Sheth referred to the fact of his being the karta of the joint family property belonging to the HUF consisting of himself, his wife, An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tative. Before the Tribunal, the department rested its claim under s. 4(1)(a)(iii) of the W.T. Act. The material portion of the said section reads as follows : " 4. (1) In computing the net wealth of an individual, there shall be included, as belonging to him-- (a) the value of assets which on the valuation date are held--... (iii) by a person or association of persons to whom such assets have been transferred by the individual otherwise than for adequate consideration for the benefit of the individual or his wife or minor child, or ...... " The Tribunal considered the contention advanced on behalf of the department which was that by reason of the declaration and throwing into the hotchpot, there was a benefit secured to the wife a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gift so as to attract the provisions of the G.T. Act, 1958. But it made the following observations in connection with the act of a Hindu coparcener in impressing his separate property with the character of joint family property; it referred to its earlier decision in M. K. Stremann v. CIT [1961) 41 ITR 297 (Mad). In the later case, before the High Court, the revenue had contended that the act of the assessee in throwing his self-acquired property into the common stock amounted to a transfer of his assets to his minor children. The High Court had observed that when the separate property of a coparcener ceases to be his separate property and becomes impressed with the character of coparcenary property, there is no transfer of that property fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the very same deed, the property was further partitioned between himself, his wife and his minor son. After the execution of this deed, the assessee claimed that he should be assessed only in respect of the income from the properties allotted to him under the deed. The income-tax authorities included the income from the properties allotted to the wife and the minor son also in the assessee's income applying s. 16(3) of the 1922 Act on the ground that the transaction amounted to a transfer of assets to the wife and the minor son. On a reference to the High Court it was, inter alia, held that the throwing of his self-acquired property into the hotchpot of the family did not amount to any transfer of such property to the assessee's wife o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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