PHILIP JOHN PLASKET THOMAS vs COMMISSIONER OF INCOME TAX CALCUTTA

The Supreme Court ruled that the provisions of Section 16(3)(a)(iii) of the Indian Income-tax Act, 1922, do not apply to income from shares transferred by a man to a woman before marriage. The Court held that since the transfer occurred before the marriage, the woman was not yet the man's wife, and thus the income from those shares cannot be included in the husband's income. The Court emphasized that the terms 'husband' and 'wife' must be interpreted in their natural sense, indicating a marital relationship, and not as prospective spouses.