Section 97 — Chargeability of income in transfer of assets

(1) All income arising to any person by virtue of a revocable transfer of assets
shall be chargeable to income-tax as income of the transferor and shall be
included in his total income.
(2) The provisions of sub-section (1) shall not apply,—
( a) where a transfer is by way of trust which is not revocable during the life-
time of the beneficiary and in case of any other transfer, is not revocable
during the lifetime of the transferee; and
( b) the transferor does not derive any direct or indirect benefit from such
income in cases referred to in clause (a).
(3) Irrespective of the provisions of sub-section (2), all income arising to any per -
son by virtue of such transfer shall be chargeable to income-tax as income of the
transferor as and when the power to revoke such transfer arises, and shall then be
included in his total income.