Scope and applicability of sub-section (1) explained with reference to Tribunal decision in Lalchand Bhalla's case

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....the applicability and scope of sub-section (1) of section 64. An extract of the said decision of the Appellate Tribunal is enclosed [printed here as Annex]. Circular : No. 174 [F. No. 237/20/75-A & PAC-II], dated 12-8-1975. ANNEX - EXTRACTS FROM TRIBUNAL'S DECISION REFERRED TO IN CLARIFICATION The other item pertains to the income amounting to Rs. 20,301 that directly arose to the minor Rajinder Mohan during the year of account under consideration from his having been admitted to the benefits of partnership in the firm Permanand Bhalla & Co. to the extent of 20 per cent share in the firm's profits. The assessee is the father of the said minor and is one of the three adult partners in the said firm. Each of the adult partners purpor....

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....ting the said approach for interpreting the meaning and scope of section 64(1)(ii) we are making out a new case which was not present to the mind of the learned Commissioner himself and that it would not be correct for the Tribunal to sustain the Commissioner's order on a ground not mentioned in his order. We are afraid, the Commissioner's order is rather brief and we are unable to reach therein that he purported to base his order, so far as the item of minor's income is concerned on any other ground which ground according to the assessee is unsustainable. We, therefore, do not agree that a new case is being made out by us. A reference to section 64(2) would, on the other hand, suggest that the Legislature was fully conscious that an indivi....