COMMISSIONER OF INCOME TAX vs SMT. PELLETI SRIDERAMMA, NELLORE

The Supreme Court held that the capital gain of Rs.58,000 was assessable in the hands of the assessee under Section 64(1)(iv) of the Income Tax Act, 1961, as the income arose from assets transferred to a minor child without adequate consideration. The Court distinguished the facts of the case from the precedent set in Prem Bhai Parekh, agreeing with the Revenue's argument that the case of Sevantilal Maneklal Sheth was more applicable. Consequently, the Court reversed the High Court's decision, ruling in favor of the Revenue.