K.S.Hegde, J.

(1) THIS appeal by special leave arises from the decision of the High court of Madhya Pradesh in a reference under S. 66 (1) of the Indian Income Tax Act, 1922 (hereinafter referred to as "the Act"). The question referred for the opinion of the High court was : "Whether in the facts and circumstances of this case, the income from the property transferred to the assessee,s wife for a consideration of Rs. 1 lakh could be assessed in the hands of the assessee under S. 16(3) of the Act?"

(2) THE facts of the case, as set out in the statement of the case submitted by the tribunal, are as follows:

(3) THE assessee, a Muslim, claimed in his assessment proceedings for the assessment year 1961-62 that a particular item of income is not his income but that of his wife. According to him he had transferred for consideration the property from out of which the income in question arose to his wife for a consideration of Rs. 1 lakh. His case was that at the time of his marriage with the transferee, in 1930, a meher of Rs. 10,000.00 had been fixed. But, in 1960, he enhanced the meher to rupees one lakh and in February or March of that year he orally