TaxTMI 
TaxTMI 
1943 (4) TMI 9
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....MENT Beaumont, CJ - This is a reference made by the Commissioner of Income-tax raising the following question:- "Whether there was any evidence before the Income-tax Officer and/or the Appellate Assistant Commissioner so as to warrant the views each of them has taken, namely, that the said sum of Rs. 1,600 being the share of the minors in the profits of the said firm of Eameshchandr....
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....elevant. In that firm the assessee is not a partner, but his minor son Jagmohandas is a partner, and so is his second minor son Eameshchandra. His brother, who is a partner in the first firm is a partner in the second firm; and one of the outside parties, who is a partner in the first firm is a partner also in the second firm; and a brother of each of the other two outside parties, who are partner....
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....y mention that the second firm was registered under Section 26A of the Income-tax Act showing the minor sons as partners, and, therefore, they fall to be assessed under Section 23(5). But I will assume that, so far as registration is concerned, it would be open to the Income-tax Officer to treat the income of the minors as part of the income of the assessee. The facts relied on as justifying th....
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.... the businesses of the two firms are closely connected, and the personality of the two firms is, as I have mentioned, also closely connected. Now, all those facts undoubtedly give rise to a suspicion that the two minor sons are really nothing but nominees of the assessee. The question really is whether those facts not only give rise to a suspicion, but justify the inference of fact drawn by the In....