1984 (1) TMI 167

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....al and, therefore, his order should be set aside and that of the ITO be restored. 2. The assessee is an individual and the assessment year involved is 1980-81 for which the accounting year ended on 31-3-1980. The assessee is a partner in Senthil Traders representing his HUF and his wife Smt. Jothi Ammal is also a partner in the same firm in her individual capacity. The assessee was paid salary of Rs. 9,000 by the firm for his services for managing the business of the firm. While the share of profits derived by the assessee was assessed in the hands of HUF, the ITO was of the view that the salary paid by the firm was assessable in the hands of the assessee in individual capacity and the share of profits derived by the assessee's wife Smt.....

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....assessee supported the order of the AAC. 3. We have duly considered the rival contentions. The issue involved in this appeal is whether the clubbing under section 64(1)(i) is warranted or not. This decision depends upon the interpretation of the word 'individual' appearing in section 64(1)(i). The AAC has pointed out the various conflicting decisions of several High Courts on this point. The majority of the High Courts have decided the issue in favour of the assessee, viz., that the expression 'individual' only takes in a person in his individual capacity and not in the capacity of the karta of a Hindu joint family. The decision of the Punjab and Haryana High Court in the case of CIT v. Anand Sarup [1980] 121 ITR 873 is squarely applicab....