1981 (5) TMI 52

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....l for these two years is whether the share income received by the assessee's wife is assessable in the hands of the assessee under s. 64(1) of the IT Act. 2. The assessee is a Government employee. His wife Smt. Saramma Varghese is a partner of M/s Mathai Chandy. She had advanced a sum of Rs. 10,000 towards her share of capital in the firm. This amount was advanced by the assessee to his wife. T....

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.... the income arising therefrom was includible in the assessee's hands under the provisio of s. 64(1). The assessments were accordingly confirmed. 4. The assessee in these second appeals before us pointed out that there has been no material before the AAC to conclude that the advance is a transfer without adequate consideration. It is stated that the provisions of s. 64 will not apply to the fact....

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....ssee. The assessee's representative printed out that neither the assessee nor his wife had been examined, that no circumstances had been brought about to show that the advance was made by the assessee without adequate consideration, that no definite finding had been recorded either by the ITO or the AAC that the wife is a benamidar and that the matter had to be restored to the ITO for proper inves....

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....t had been introduced by the wife in the partnership of which she was a partner and the share income was derived by her during the two previous years relevant for the assessment years under consideration. The assessee has claimed that the amount has been advanced by way of loan. Normally when a transaction of loan is entered into between parties related to each other like husband and wife there ma....