- (1.) All these appeals by certificate are filed by the legal representatives of Late Karam' Chand Thapar who was the assessee in this case. He died after the assessments were made. The assessment years with which we are concerned in these appeals are 1949-50, 1950-51, 1951-52, 1952-53 and 1953-54. The facts of the case lie within a narrow compass. Late Karam chand Thapar made certain cash gifts to his wife Smt. Mohini Thapar. From out of those gifts, she purchased certain shares and the balance amount she invested. The shares earned dividends and the investments yielded interest. The interest realised and the dividends earned were included in the income of Karam Chand Thapar for the purpose of assessment in the assessment years mentioned earlier. The assessee objected to the inclusion of that amount in his income. The question is whether the department was entitled to include the dividends and interest in question in computing the taxable income of the assessee. The Income-tax Officer held that they were liable to be included in the income of the assessee. That decision was upheld by the Appellate Assistant Commissioner. On a further appeal, taken by the assessee to the tribunal the tribunal upheld the order of the Assistant commissioner. Thereafter at the instance of the assessee, the question set out below was submitted to the High court under S. 66 (1) of the Indian income Tax Act, 1922, in respect of the assessment year 1949-50 : "(1) Whether on the facts and in the circumstances of the case, the income of Rs. 21,225. 00 derived from deposits and shares held by the 494 assessee's wife, Smt. Mohini Devi Thapar, was income from assets directly or indirectly transferred by the assesses to his wife within the meaning of S. 16 (3) of the Income-tax Act. 'similar questions were referred in respect of other assessment year. The high court answered these questions in favour of the revenue. Hence these appeals.
(2.) S. 16 (3) (a) (iii) of the Act-the provision relevant for the purpose of these appeals read thus: "3.In computing the. total income of any' individual for the purpose of assessment, there shall be included- (A) so much of the income of a wife or minor child of such individual as arises directly or indirectly-
(3.) The assets transferred in this case is the gift of cash amounts made by the assessee to his wife. The transfers in question are direct transfers. But those assets, as mentioned earlier, were invested either in shares or otherwise. Hence it was urged on behalf of the revenue that the incomes realised either as dividends from shares or as interest from deposits are income indirectly received in respect of the transfer of cash directly made. This contention of the revenue appears to be sound. That position clearly emerges from the plain language of the section.;