TaxTMI 
TaxTMI 
2003 (1) TMI 36
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....the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law, in holding that the share income of the assessee's minor children was assessable in the firm under section 182(3) of the Income-tax Act and that it could not be included in the hands of the non-resident assessee in his individual assessment under section 64(1)(iii) of the Act?" Master Rajesh Kumar and Master Kartik Kumar, minor sons of B. Narasimha Rao, have been admitted to the benefits of partnership in the firm of B. Rajesh and Company, Hyderabad. The said B. Narasimha Rao and his two minor children were, at the relevant time, residing in United States of America and treated as "non-residents" for the purpose of the Indian Income-ta....
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....s of the assessee, non-resident, in his individual assessment under section 64(1)(iii) of the Act. Section 64(1)(iii) of the Act as such is not applicable is the conclusion reached by the Tribunal. Sri S.R. Ashok, learned senior standing counsel for the income-tax, submits that the order of the Appellate Assistant Commissioner as well as the order of the Appellate Tribunal is erroneous on facts and in law. It is contended that the provisions of section 182(3) of the Act are procedural in nature and the same cannot override the provisions of section 64(1)(iii) of the Act, which is a substantive provision. It is also contended that section 182(3) of the Act refers to the partner of a firm, who is a non-resident and not the minor who was ad....
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....etc. It is very well settled and needs no reiteration in our hands that a general statute or a general provision applies to all persons within its jurisdiction and scope as distinguished from a special one, which in its operation is confined to a particular locality or a particular group of persons or class of cases. A law, which is essentially general in nature, may also contain special provisions on certain matters and in respect of those matters it would be classified as a special law. Section 182, as it stood at the relevant time, no doubt, is a part of Chapter XVI containing special provisions applicable to firms. Section 182 of the Act dealt with assessment of registered firms. It would be relevant to notice the said provision: ....
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....e rate or rates, which would be applicable if it were assessed on him personally. Obviously, it is a mechanism provided to ensure speedier recovery of tax making the firm itself liable to pay the tax as provided for in sub-section (3) of section 182. The question is not as to whether the said provision is a special provision. May be it is a special provision providing mechanism for the purpose of recovery and realisation of tax in the case of non-resident partners of a registered firm. The question is as to whether it is a substantive provision or a procedural one. It does not in whatsoever manner exclude the operation of section 64 of the Act. Section 64 of the Act specifically provides that in computing the total income of any individu....