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TMI Blog1985 (4) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... Badama Pandey for their maintenance and the education of their children. The assignment or transfer of the copyright was only for a period of fifteen years beginning from the date of the assignment. The deed further stated that after the lapse of the above period of fifteen years, the copyright was again to revert back to the assessee, i.e., the transferor. The assignees were to forfeit all the rights accrued to them under the said assignment. I quote below the above deed in full : " I, Sri Netra Pandey, son of Pt. Chet Ram Pandey, resident of 31-C Beli Road, Allahabad, hereby assign and transfer the copyright of my book 'Bharat Varsha Ka Sampurna Itihas' published in two volumes by Lok Bharti, 15A, Mahatma Gandhi Marg, Allahabad, to my ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t accept the above claim. With regard to the income accruing to the assessee from publication of books by Student Friends, his finding was that there was only an assignment or transfer of the income without any transfer of the assets, which was the copyright in this case. He, therefore, held that such income was assessable in the hands of the assessee in terms of section 60 of the Income-tax Act, 1961 ('the Act'). He also rejected the other contention of the assessee that he was following cash system of accounting. The ITO held that the assessee had been following mercantile system of accounting with regard to this income and, therefore, as soon as that income became due to him from Student Friends, it was assessable in his assessment under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shers. 8. With regard to the income accruing from Lok Bharti his finding was as under : " The assessee had copyright of some books through the publishers, Lok Bharti. The copyright was assigned to three daughters-in-law in 1968. Since the income along with the assets were already transferred, therefore, no income arises to him. " 9. The above findings of the AAC have been challenged before us by the department. It may be mentioned here that there is no appeal by the assessee in this case. The learned departmental representative submitted before me that the assessee had been following mercantile system of accounting even with regard to the income accruing from Student Friends and, therefore, its exclusion by the AAC from the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or. It was also submitted that the deed itself gave the assessee a right to re-assume power directly over the whole of the income or the assets after a period of 15 years. He, therefore, submitted that this was clearly a revocable transfer in terms of section 63(a) of the Act. He further submitted that the assessee's case, therefore, fell within the scope of section 61, there being no provision in section 62 of the Act by which the assessee could claim any exemption from tax. The learned counsel for the assessee, on the other hand, submitted that the assignment was irrevocable for a period of fifteen years and, therefore, income arising during this period, which also covered the assessments under appeal could not be taxed in the hands of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll transfers which contain any provision for the retransfer of the whole or any part of the income or assets to the transferor or if they give, in any way, the transferor a right to re-assume power directly or indirectly over the whole or any part of the income or assets have been held to be revocable transfers. Section 62 of course provides certain exceptions. There are two such exceptions. One exception is in the case of a trust, which is not revocable during the lifetime of the beneficiary and similarly, in the case of any other transfer, it is not revocable during the lifetime of the transferee. Admittedly, this is not the case here. The second exception is in the cases of those transfers which were made before 1-4-1961 and which were n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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