Deemed transferor in case of cross transfer

This discussion clarifies the concept of a 'deemed transferor' in scenarios where assets are cross-transferred between individuals, such as Mr. A transferring an asset to Mrs. B and vice versa. The core principle is that income generated from such assets will be clubbed in the hands of the original transferor. This applies even when the transfers are made at fair market value, provided specific provisions like Section 56(2)(x) of the Income Tax Act are not attracted.