Clubbing of minor child's partnership income under section 64(1) does not apply where the individual has no income.

Section 64(1) of the Income-tax Act requires the minor child's share income to be included in computing the total income of the individual concerned. Where the individual has no income of his own, there is no total income to compute and the statutory condition for clubbing does not arise. On that basis, the minor children's partnership share income could not be added in the assessment of such an individual, and the proposed inclusion was excluded.

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Issues: Whether, for the purpose of sub-section (1) of section 64 of the Income-tax Act, 1961, the share income arising to minor children admitted to the benefits of partnership could be included in the total income of an individual who had no income of his own.

Analysis: Section 64(1) contemplates inclusion of a minor child's income in computing the total income of the individual concerned. Where the individual has no income at all, there is no occasion to compute his total income, and the statutory condition for clubbing does not arise. The contrary view taken in the assessment proceedings was not accepted.

Conclusion: The share income of the minor children could not be included in the assessment of the individual who had no income of his own, and the addition was directed to be excluded.

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