Law:

Section:

income-fixed deposits in the names of wife and minor son-no independent source of income by the wife and minor-held that deposits represented income of the assessee Facts Chhidama Lal Bishamber Nath, of which the assessee was the karta, was assessed for the year 1966-67 in the status of a HUF and in the subsequent years, the assessee was assessed in the status of an individual. Noticing that there were certain fixed deposits in the names of the assessee's wife and his minor children, the ITO reopened the relevant assessments and treated the deposits as the income of the assessee. The assessee went in appeal but failed. The Tribunal found that it was not a case of casual deposit but a regular flow of deposits in the names of the wife and the minor son; and disbelieved the version of the wife that the deposits in her name were made out of gifts received by her from her parents from time to time for want of evidence. Before the High Court, it was contended that the deposits were made out of shares allotted in partition after the assessment year 1966-67. Rejecting the contention: Held Had it been the case that the deposits were made out of shares allotted in partition, the wife should have given a certificate to that effect while on the other hand, earlier she gave a different version. On facts, the deposits were assessable as income of the assessee. Editor's note The explanation that the deposits were made out of property received by the wife and minor son on partition was not considered by the Court as the explanation before the revenue authorities was different. JUDGMENT Satish Chandra C.J.-M/s. Chhidama Lal Bishambhar Nath was assessed for the year 1966-67 in the status of HUF. In the assessment year 1968-69, Sri Lallu Mal, who was a karta of the aforesaid HUF, was assessed in the status of an individual. The same situation prevailed in the assessment years 1969-70 and 1970-71. After the assessments for the first two years were completed, the ITO noticed that there were certain fixed deposits in the Punjab National Bank in the names of the wife and minor son of Lallu Mal. He reopened the proceedings under section 147 of the Income-tax Act, 1961, and after…

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