Minor's partnership share income is clubbed with parent's income when earned through admission to partnership benefits.

Section 64(1)(iii) of the Income-tax Act, 1961 applies where a minor child derives share income from a partnership firm by admission to the benefits of the firm, and that income is includible in the parent's total income. The source of the minor's investment in the firm is not decisive for this statutory inclusion. A claim that the minor represented a Hindu undivided family did not change the result where the income was referable to admission to partnership benefits. On that basis, the minor son's share income was added to the assessee mother's income.

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Issues: Whether the share income arising to the minor son from a partnership firm was includible in the total income of the assessee mother under section 64(1)(iii) of the Income-tax Act, 1961, and whether the fact that the investment in the firm came from Hindu undivided family funds affected that inclusion.

Analysis: Section 64(1)(iii) applies where income arises to a minor child from a partnership firm by reason of admission to the benefits of the firm, in which event the income is to be included in the total income of the parent. The source of the minor's investment in the firm is not decisive for the application of the provision. The fact that the minor was said to represent a Hindu undivided family in the partnership did not alter the statutory consequence when the income was referable to admission to the benefits of partnership.

Conclusion: The share income of the minor son was rightly added to the assessee's income, and the questions referred were answered in the affirmative, against the assessee.

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