TaxTMI 
TaxTMI 
TaxTMI 
Scope and applicability of sub-section (1) explained with reference to Tribunal decision in Lalchand Bhalla's case
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....the scope and applicability of sub-section (1) of section 64. 2. In this connection the decision of the Income-tax Appellate Tribunal, Chandigarh Bench in the case of Lalchand Bhalla v. ITO [IT Appeal No. 400 of 1973-74, dated 30-11-1974] may be referred to where the Appellate Tribunal has discussed the applicability and scope of sub-section (1) of section 64. An extract of the said decision of t....
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....eous as he failed to include in the assessee individual's assessable total income, the share income earned by Rajinder Mohan as aforesaid. The contention of the assessee before us was that as the share income earned by Lal Chand, assessee, from the said partnership firm was not earned by him as an individual, there arose no question of applicability of section 64(1)(ii) to his case. It is common ....
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....nt of law was there, in our opinion for applying section 64(1)(ii) to the instant case. Shri Vaish, appearing for the assessee, felt that by adopting 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 Commissi....
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....he interest earned on such capital contribution was in law to be assessed as income in the hands of the Hindu undivided family concerned, such individual did not cease to be a partner in the firm so far as section 64(1) was concerned. It was also contended on the assessee's side that section 64 was enacted to suppress a certain mischief, i.e., that earlier an individual partner was able to reduce....