TaxTMI 
TaxTMI 
1996 (1) TMI 113
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....) Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that there was a transfer of shares by the assessee to his wife within the meaning of section 45 of the Act ? " The facts lie in a narrow compass. The assessee gave 5,852 equity shares of Union Carbide and 1,637 equity shares of Chemical and Fibres, apart from cash and other properties to his wife in connection with an agreement to live apart in pursuance of a consent decree obtained from the competent court. According to the Income-tax Officer, the assessee transferred the above shares and other assets as capital gain and as such he added the said amount of Rs. 74,098 in the income of the assessee. The assessee filed the appeal and claimed tha....
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....transfer of a capital asset effected in the previous year chargeable to income-tax under the head "Capital gains" are deemed to be the income of the previous year in which the transfer took place. The property was given to the wife in connection with an agreement to live apart. Such an act is permissible under section 64(1)(iv) of the Income-tax Act. The Tribunal noted the expression "or in connection with an agreement to live apart" as employed in section 64(1)(iv) and observed that the Legislature meaningfully did not use the word consideration and instead used the word "connection". The property was given in terms of a compromise decree. The Tribunal, therefore, held that the assessee by giving the property quantified at Rs. 1,83,000, di....
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.... Income-tax Act defines the term "transfer" as under : "(47) 'transfer', in relation to a capital asset, includes,-- (i) the sale, exchange or relinquishment of the asset ; or (ii) the extinguishment of any rights therein ; or (iii) the compulsory acquisition thereof under any law ; or " We find that the assessee extinguished his rights in the aforesaid property and as such the act is covered by the aforesaid definition and is clearly the transfer in terms of the provisions of the Act. The asset was relinquished and the rights were extinguished. The spouse became the owner of the aforesaid property given to her in connection with the agreement to live apart. In view of this position, counsel for the assessee was unable to show as to h....