COLLITER AND BAJPAI, JJ. - (1.) THIS is a reference under Section 66 (2) of the Indian Income-tax Act.
(2.) THE assessee is Gaya Prasad Tewari. THE accounting year was from Asarh Sudi 3rd, S. 1992 to asarh Sudi 11th, S. 1993 and the assessment year was 1937-38. One of the items included by the Income-tax Officer in the income of the assessee was a sum of Rs. 600 consent and it was provided that the lady was to appropriate Rs. 50 a month from the income of the trust property by virtue of her office as Mukh Dharam Karta. Having regard to all the facts, we are of opinion that in the circumstances of this case the allowance of Rs. 50 a month was income which arose indirectly from assets transferred directly or indirectly to the wife by the husband otherwise than for adequate consideration or in connectio wirh an agreement to live apart. It is, therefore, computable as part of the total income of the husband under Section 16 (3) (iii) of the Act; it is not salary arising out of employment, as claimed on behalf of the assessee. It is next contended on behalf of the assessee that Section 16 (3) of the Act is not restrospective. This sub-section was added by the Income-tax (Amendment) Act of 1937, which came into force on the 4th March 1937. The transfer was in 1922, but the income wirh which we are concerned was charged in the assessment year 1937-38. Section 5 of the Amending Act provides :
(3.) THE amendment made in the said Act by Section 2 shall not have effect in respect of any income chargeable to income-tax for any year ending before the 1st day of April 1937. This means that it shall have effect in respect to income chargeable to income-tax for any year, ending after the 1st of April 1937.;