Court rules fixed deposits in wife and son's names as income of assessee.

The court upheld the Tribunal's decision, ruling that fixed deposits in the names of the wife and minor son of the assessee were to be treated as the income of the assessee for multiple assessment years. The wife's claim that the deposits were gifts from her parents was deemed unsupported, and the argument that they could be from assets received in a partition lacked evidence. The court found that there was enough evidence to support the deposits being considered the income of the assessee, ultimately ruling in favor of the department and awarding costs to the Commissioner of Income-tax.

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Issues: Assessment of deposits in the names of wife and minor son as income of the assessee for multiple assessment years.

The judgment pertains to the assessment of fixed deposits in the names of the wife and minor son of the assessee as the income of the assessee for the assessment years 1966-67, 1968-69, 1969-70, and 1970-71. The Income Tax Officer (ITO) reopened the proceedings under section 147 of the Income Tax Act, 1961, after noticing the fixed deposits. The assessee, assessed as an individual from 1968-69 onwards due to a partition in the family, was held liable for the deposits. The Tribunal found that the wife and minor son had no independent source of income, and the deposits were not casual but regular. The wife claimed the deposits were gifts from her parents, but the authorities found the explanation vague and unsupported. The counsel argued that the deposits could be from assets received in the partition, but the wife did not provide evidence for this. The court upheld the Tribunal's finding, concluding that there was sufficient evidence to support the deposits being the income of the assessee. The question was answered in favor of the department, allowing costs to the Commissioner of Income-tax.

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