1This is a reference under S.66(1) of the Indian Income Tax Act, 1922 , by the Income Tax Appellate Tribunal, Madras. The question referred is:
"Whether the aforesaid income of the wife and minor children is assessable in the hands of the assessee under S.16(3)(a) (iii) and (iv) ? "

2 The assessment years concerned are 1950-51, 195t-52, and 1952-53. The order from which the reference arises is the consolidated order of the Income Tax Appellate Tribunal in I. T. A. Nos. 974, 975 and 2653 of 1958-59 dated 18-11-1958.

3 The Tribunal said :
"The assesses, Sri M. K. Mackar Pillai, owned house properties and agricultural lands in and around Alwaye and was carrying on business under the name and style of M/s. Mackar Pillai & Sons at Cochin and Always. By a deed of settlement dated 12-11-1116 M- E. he transferred certain agricultural lands to his wife Khader Amina Unma and minor daughters (i) Kadija, (ii) Jameela and (iii) Zulckha. In October, 1941, he converted the business of Mackar Pillai and Sons into a private limited company. It is common ground that Mackar Pillai's wife and three minor children were alloted certain shares (hereinafter referred to as the company shares) in the said comp

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