2001 (1) TMI 17

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uestion is concerned: "1. Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that section 64(1)(iii) of the Income tax Act, 196 1, as substituted by the Taxation Laws (Amendment) Act, 19 75, with effect from April 1, 1976, was applicable to the case of the assessee? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that the income arising to Shri Deepak Aggarwal in the firm of Rakesh Deep was otherwise includible to the total income of the assessee? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the interest on the accumulated profits which remained with the fi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssee before the Appellate Assistant Commissioner (the "AAC" in short). It was stated that neither the capital was advanced by the assessee nor was the assessee himself a partner in the firm in which the minor had been admitted to the benefits of partnership and, therefore, section 64(1)(iii) did not have any application. The Appellate Assistant Commissioner did not accept the plea. The matter was carried in further appeal before the Tribunal. The stand taken by the assessee before the Assessing Officer and the Appellate Assistant Commissioner was reiterated. Additionally, it was pointed out that the amended provision brought in by the Taxation Laws (Amendment) Act, 1975, could not have any application because the previous year of the firm e....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... Learned counsel for the Revenue pointed out that in view of the clear language of section 64(1)(iii) there is no scope for entertaining a doubt about the correctness of the view expressed by the Tribunal so far as the first two questions are concerned. So far as the third question is concerned reliance is placed on a decision of this court in CIT v. Ghewar Chand Kanuga [1997] 228 ITR 460. In order to appreciate the stand taken by the Revenue it would be appropriate to quote section 64(1)(iii) as it stood at the relevant point of time: "64. (1) In computing the total income of any individual, there shall be included all such income as arises directly or indirectly... (iii) to a minor child of such individual from the admission of ....