Transfer to wife and minor children without adequate consideration falls within deemed inclusion under agricultural income-tax rules.

Property purchased in the names of an assessee's wife and minor children was treated as a transfer of assets otherwise than for adequate consideration where the assessee provided the consideration and no independent source of funds was proved. The statutory language of section 9(2)(a)(iv) of the Agricultural Income-tax Act, 1950 was applied to include direct or indirect transfers to minor children in the computation of agricultural income. The claimed repayment by instalments was not accepted as sufficient evidence to change the character of the transaction. On the stated facts, the transfer was held to fall within the provision and was includible in the assessment.

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Issues: Whether the properties purchased in the names of the assessee's wife and minor children, where the consideration was provided by the assessee and no independent source of funds was shown, amounted to a transfer of assets otherwise than for adequate consideration within section 9(2)(a)(iv) of the Agricultural Income-tax Act, 1950.

Analysis: The statutory language of section 9(2)(a)(iv) was applied to include assets transferred directly or indirectly to a minor child otherwise than for adequate consideration in the computation of agricultural income. The Tribunal's finding that the purchase price substantially came from the assessee, while the wife and minor children had no independent source of funds, was accepted. The alleged repayment by instalments was treated only as a submission and not as material evidence sufficient to alter the character of the transaction. The earlier appellate records also did not support any case that the transfers were for adequate consideration or from an independent source of the transferees.

Conclusion: The transaction fell within section 9(2)(a)(iv) and the question was answered in the affirmative against the assessee and in favour of the Revenue.

Ratio Decidendi: Where the assessee provides the consideration for property purchased in the names of wife or minor children and no independent source or adequate consideration is proved, the transfer is includible under section 9(2)(a)(iv) of the Agricultural Income-tax Act, 1950.

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