Clubbing of minors' income under section 64(1) not sustained where prior judicial authority barred inclusion.

Income of minors was held not includible in the assessee's total income under section 64(1) of the Income-tax Act, 1961. The Tribunal followed its earlier connected appeal and the judicial authority relied on there, which had held that minors' income could not be clubbed with the assessee's income under that provision. It also noted a further High Court decision supporting the same principle. On that basis, the appellate order deleting the minors' income from the assessee's total income was treated as correct, and the inclusion was not sustained.

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Issues: Whether the income of the minors could be included in the assessee's total income under section 64(1) of the Income-tax Act, 1961.

Analysis: The exclusion claimed by the assessee had already been accepted by the Tribunal in an earlier connected appeal, following judicial authority holding that the income of minors could not be included with the assessee's income under section 64(1). The same principle had also been reiterated by another High Court decision relied upon by the Tribunal. On that basis, the appellate order deleting the minors' income from the assessee's total income was found to be correct.

Conclusion: The inclusion of the minors' income under section 64(1) was not sustained, and the assessee succeeded on the issue.

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