Assessment of profit from a minor's transactions failed where the firm did not carry out or enjoy the income.

Profit from purchase and sale transactions carried out by a minor through his father and guardian was not assessable in the firm's hands where the evidence showed the guardian acted on the minor's behalf, the minor had sufficient funds with the firm, and the income was credited to the minor's account. As the Revenue produced no material to show that the firm itself undertook the transactions or enjoyed the profit, the addition in the firm's assessment was not justified and was deleted.

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Issues: Whether the profit arising from purchase and sale transactions carried on by the minor through his father and guardian could be assessed in the hands of the firm.

Analysis: The finding recorded was that the transactions were effected by the father on behalf of the minor, who had sufficient funds with the firm and in whose account the income was credited. The Revenue failed to place any material to show that the firm itself undertook the transactions or enjoyed the profit. On these facts, the guardian was competent to act on behalf of the minor, and the addition in the firm's hands was not justified.

Conclusion: The addition of Rs. 6,053 in the hands of the firm was not sustainable and was rightly deleted.

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