TaxTMI 
TaxTMI 
1987 (1) TMI 130
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....p; Number of shares No. 1. Master Y. D. Khatau (The assessee's son's minor son) 842 2. Miss Kalindi D. Khatau (The assessee's son's minor daughter ) 156 3. Shri D. D. Khatau (The assessee's son - major) 1 4. Shri K. D. K....
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....ed benefit of the son's wife, or the son's minor child, of such individual or both." 6. Sub-clause (vi) quoted above has been inserted with effect from 1-4-1985. That subi-clause is, therefore, not applicable to the assessment year with which we are concerned. Two condition are necessary for attracting sub-clause (v). The first is that there should be direct or indirectly transfer of the asset in question by the assessee in favour of son's minor child. The second is that the asset in question should be held be held by the assessee's minor child in the relevant valuation date. The asset with which we are concerned is a sum of Rs. 1,87,000 which has been gifted by the assessee to the company. We shall assume that the transaction resulted i....
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....o minor children out of said amount by the company, that would amount to deemed dividend. This also does not take the matter further for determining whether on the relevant valuation date the asset in question was held by the minor children. In fact the learned Commissioner (Appeals) while setting out the essential ingredients of sub-clause (v) of section 4(1)(a) did not mention the important ingredient to the effect that the asset in question should be held by the minor children on the relevant valuation date and this aspect has been completely overlooked. What he has considered is whether there was indirect transfer to minor children. 8. In this connection sub-clause (vi) is relevant. Under that sub-clause, it is not necessary that the....