1984 (4) TMI 140

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....e credited in the accounts of the minor sons in the deposit accounts with the assessee firm was not includible under s. 64 of the IT Act. The departmental representative argued that it was includible and he relied upon the following case laws: (i) S. Srinivasan vs. CIT (1967) 63 ITR 273 ((SC)) (ii) S. Srinivasan by L.Rs. Shanbagammal & Ors. vs. CIT (1976) 105 ITR 315 (Mad) (iii) Smt. Nripendra Kumari Bhandari vs. CIT (1976) 105 ITR 158 (Mad) 4. The A.R. relied upon the following case laws: (i) CIT vs. S.V. Nashte (1979) 12 CTR (Bom) 231 : (1979) 119 ITR 130 (Bom) (ii) Chandanmal Kistur Chand (1978) 112 ITR 296 (Bom) (iii) Decision of the ITAT, Ahmedabad Bench-B in ITA No. 2282 of 1980 dt. 16th Dec., 1981. 5. We have given our due co....

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....2 CTR (Bom) 231 : (1979) 119 ITR 130 (Bom) that for s. 64 to apply there must be a nexus direct or indirect between the income which accrues to the minor and his admission to the benefits of the partnership. Interest received on loans advanced by a minor out of his own funds to a partnership firm to the benefits of which he is admitted cannot be said to be the income arising directly or indirectly from the admission of the minor to the benefits of the partnership. Thus their Lordships of the Bombay High Court held that interest so credited in the deposit accounts of the minor was not liable to be included in the income of the assessee. 6. The Ahmedabad Bench of the ITAT in the decision quoted above have clearly held as under: "The main pr....