https://www.taxtmi.com/caselaws?id=7866 Section 16(3) of the Income-tax Act, 1922 applies only where the revenue brings material showing that a wife's income arose from assets transferred by the husband, directly or indirectly, otherwise than for adequate consideration. Because the provision creates an artificial tax liability, it must be strictly construed and the burden remains on the revenue to prove the transfer by direct evidence or established surrounding circumstances. Here, the only adverse feature was rejection of the assessee's explanation about the wife's independent source of assets. As no independent material or reasonable inference of transfer was available, the Tribunal had no basis to invoke the provision, and the answer was in favour of the assessee. en-us Tue, 31 Mar 1970 00:00:00 +0530 Mon, 23 Mar 2009 10:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7866 Section 16(3) of the Income-tax Act, 1922 applies only where the revenue brings material showing that a wife's income arose from assets transferred by the husband, directly or indirectly, otherwise than for adequate consideration. Because the provision creates an artificial tax liability, it must be strictly construed and the burden remains on the revenue to prove the transfer by direct evidence or established surrounding circumstances. Here, the only adverse feature was rejection of the assessee's explanation about the wife's independent source of assets. As no independent material or reasonable inference of transfer was available, the Tribunal had no basis to invoke the provision, and the answer was in favour of the assessee. Case-Laws Income Tax Tue, 31 Mar 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7866