1982 (3) TMI 175 - AT - Income Tax

Tribunal upholds income inclusion from minor children in partnership under Income-tax Act.

The tribunal dismissed the appeal, upholding the inclusion of income from both minor children in partnership under section 64(1)(iii) of the Income-tax ... Transfer Of Assets, For Benefit Of Spouse Or Minor Child Issues:1. Interpretation of section 64(1)(iii) of the Income-tax Act, 1961 regarding inclusion of income from minors in partnership.2. Application of section 13 of the General Clauses Act in interpreting the term 'minor child' in the context of income tax law.Detailed Analysis:1. The appeal involved the interpretation of section 64(1)(iii) of the Income-tax Act, 1961, regarding the inclusion of income from minors in partnership. The appellant argued that the term 'minor child' should be construed to include only one child and not both children, as she had two minor sons admitted to the benefits of partnership. The first appellate authority upheld the assessment, citing section 13 of the General Clauses Act, which states that words in the singular shall include the plural unless the context requires otherwise. The appellant contended that the legislative intent had changed with the substitution of words in the Act. However, the tribunal noted the historical context of the provision and found no rationale to restrict inclusion to cases with only one minor child. The tribunal emphasized that there was no explicit reasoning to support such a restrictive interpretation, ultimately dismissing the appeal.2. The application of section 13 of the General Clauses Act was crucial in this case. The tribunal highlighted that the General Clauses Act provides that words in the singular shall include the plural unless the context requires otherwise. The tribunal rejected the appellant's argument that section 160 of the Income-tax Act, which uses the term 'a minor,' should override the general principle of section 13. Referring to legal precedents, the tribunal emphasized that the use of 'a' and 'the' may be interchangeable and that there was no reasonable doubt in the interpretation of the provision. The tribunal also noted that other rules of interpretation, such as avoiding absurd consequences, supported their decision to dismiss the appeal.In conclusion, the tribunal dismissed the appeal, upholding the inclusion of income from both minor children in partnership under section 64(1)(iii) of the Income-tax Act, 1961. The judgment reaffirmed the application of the General Clauses Act in interpreting statutory provisions and emphasized the importance of historical context and legislative intent in statutory interpretation.