Clubbing of minor children's partnership income upheld in mother's assessment under income-tax anti-avoidance provisions.

Minor children's shares of profits from a partnership were held includible in the mother's total income under section 16(3)(a)(ii) of the Indian Income-tax Act, 1922. The court followed its earlier construction of the provision and rejected the argument that it applied only to an individual capable of having a wife, holding that no fresh ground justified departing from that interpretation. The provision was therefore applied to the assessee-mother, and the minors' partnership income was clubbed in her taxable income.

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Issues: Whether the shares of profits accruing to minor children admitted to the benefits of a partnership could be included in the total income of their mother under Section 16(3)(a)(ii) of the Indian Income-tax Act, 1922.

Analysis: The issue was treated as covered by an earlier decision of the same Court. The argument that the provision could apply only to an individual capable of having a wife, and therefore not to a woman, was rejected by relying on the prior construction of the section. No fresh ground was found to depart from that interpretation.

Conclusion: The section applied to the assessee-mother, and the minors' shares of profit were includible in her income.

Final Conclusion: The reference was answered in the affirmative on the inclusion of the minors' partnership shares in the mother's taxable income.

Ratio Decidendi: Section 16(3)(a)(ii) of the Indian Income-tax Act, 1922 permits clubbing of income arising to minor children admitted to the benefits of a partnership in the assessment of the mother to whom the provision applies.

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