1980 (11) TMI 65

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....e order of the ld. Commr. (Appeals). 2. The first point is regarding addition of Rs. 560. The ITO noted that there was fixed deposit of Rs. 8,000 in the name of minor son of the assessee; the deposit was made out of the amount received on the maturity of an insurance policy for which premia were paid by the assessee. The ld. Commr. (Appeals) dismissed the assessee's appeal on this aspect. 3.....

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....e this could not be a gift. 5. Shri Deodhar, the ld. Deptl. Rep. pointed out that the transaction was between the assessee and the Life Insurance Corporation; it was not between the assessee and his son. According to him, the assignment of interest in the policy amounted to transfer directly or indirectly some funds without adequate consideration. 6. In our view, the fact that the assessee p....

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.... son, he invested the funds to earn interest income. Shri Shah referred to CIT. vs. Prem Bhai Parekh and Ors., (1970) 77 ITR 27 (SC)and urged that there should be a proximate relationship between the assets of the assessee and earning of income. In our view, the transactions do not give rise to any such proximate relationship. The link between the assessee's funds and the assessee's assets on one ....