1998 (2) TMI 110

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....erred the following question of law for the opinion of this court under sub-section (1) of section 256 of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee's case fell within the mischief of section 64(1)(iv) of the Income-tax Act, 1961 ?" The dispute pertains to the assessment year 1976-77. In the ....

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.... adequate consideration and in pursuance of an agreement to live apart, the income arising from such transfers was liable to assessment in the hands of the assessee within the meaning of section 64(1)(iv) of the Income-tax Act, 1961 (for short "the Act"). By a separate assessment order the interest amount of Rs. 14,652 was also assessed in the income of the assessee by invoking the provisions of s....

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....rred the various sums to his wife for meeting the household expenses and since due to his service conditions, the assessee's wife had necessarily to stay separate from the assessee, the income earned by the assessee's wife out of the savings could not be clubbed in the hands of the assessee by invoking the provisions of section 64(1)(iv) of the Act. This plea was repelled by the appellate authorit....

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....ed before me, it is difficult to hold that the assessee was remitting the money to his wife on her living separately from him. The assessee could remain outside the mischief of section 64(1)(iv) of the Act if he can show that the moneys remitted to his wife were for adequate consideration or in connection with an agreement to live apart. In this case, the assessee has miserably failed to show that....