Amended section 64(1)(iii) applied from assessment year 1976-77, bringing minor sons' partnership income into the father's hands.

The amended section 64(1)(iii) of the Income-tax Act applied to assessment year 1976-77 because tax liability is governed by the law in force at the commencement of the assessment year. The fact that the accounting period ended before 1 April 1976 did not prevent application of the amended provision. As a result, the share income of the minor sons from their admission to the benefits of partnership was includible in the father's hands under the amended clause.

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Issues: Whether, for assessment year 1976-77, the amended section 64(1)(iii) of the Income-tax Act, 1961 applied so as to include the share income of minor sons from firms in the hands of their father, notwithstanding that the accounting period ended before 1 April 1976.

Analysis: The applicable tax law is the law in force at the commencement of the assessment year. Since the assessment year in question was 1976-77, the amended provision effective from 1 April 1976 governed the assessment. On that basis, the share income of the minor sons from their admission to the benefits of partnership was liable to be included in the hands of the father under the amended clause.

Conclusion: The question was answered in the affirmative, and the inclusion of the minor sons' share income in the father's hands was upheld.

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