A gifted debentures of Ria Ltd., to a girl B in March, 2015. Later, B married to A's son C in March, 2017. B received interest of ₹1,40,000 from the debentures in the Previous Year 2018-19. The Assessing Officer (AO) add

Section 64(1) (vi) of the Income Tax Act, 1961: In computing the total income of any individual, there shall be included all such income as arises directly or indirectly to the son's wife, of such individual, from assets transferred directly or indirectly on or after the 1st day of June, 1973, to the son's wife by such individual otherwise than for adequate consideration. However, for applying the clubbing provisions, the relationship (i.e. Father in Law and Daughter in Law) should subsist both at the time of transfer of assets and at the time of accrual of Income. Therefore the action of the Assessing Officer 'AO' adding the B's interest income from debentures with the income of A is not in accordance with the provision of Section 64(1)(vi) as the relationship i.e. daughter in law and father in law does not subsist at the time of transfer of debentures to B by A.