1982 (7) TMI 103

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....e provisions of section 64(1)(vi), the share income of these two ladies were included in the total income of the assessee up to the assessment year 1977-78. For the year under appeal, the assessee claimed before the ITO that since these two ladies had withdrawn Rs. 7,500 each on 7-7-1977 from the firm in which they were partners and had opened fixed deposit accounts with the Bank of Baroda, the provisions of section 64(1)(vi) were not attracted inasmuch as the gift of Rs. 7,500 each made by the assessee to these two ladies have been withdrawn from the books of the firm in which they were partners. The ITO, however, was of the view that withdrawing of the amount of Rs. 7,500 each by the ladies from the books of the firm would not automatical....

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....ances, the inclusion of income from share enjoyed by the ladies is found to be for valid reasons and the same is hereby approved." 5. Being aggrieved by the order of the AAC, the assessee had come up in appeal before the Tribunal. The learned counsel for the assessee once again made the same submissions as were made by him before the income-tax authorities and contended that the income-tax authorities were not justified in invoking the provisions of section 64(1)(vi). In support of his submission, the learned counsel for the assessee relied on a decision of the Bombay High Court in the case of Popatlal Bhikamchand v. CIT [1959] 36 ITR 577. The learned representative for the department, on the other hand, relied on the orders of the income-....

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....16(3)(a)(iv) sought to tax in the hands of the assessee income, arising from accretions to the assets transferred by him to his minor child." It would be clear from the above, that the Bombay High Court was concerned with the facts which are clearly distinguishable from the facts with which we are concerned in the present appeal. In the instant case, the two ladies became the partners in the firm of Kamleshji Premchand with the help of the money gifted by the assessee. Thereafter, their share of profit was credited to their respective capital accounts and in the accounting year relevant to the assessment year under appeal, both these ladies withdrew Rs. 7,500 each from their capital account and deposited the same in the Bank of Baroda. Sin....