TaxTMI 
TaxTMI 
1943 (4) TMI 9
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 ₹ 1,600 being the share of the minors in the profits of the said firm of Eameshchandra & Co., for the Samvat year 1994....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssee 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 partners of the first firm, is a part....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as 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 the finding of the Income-tax Office....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ms 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 Income-tax Officer that the mino....