1998 (2) TMI 85

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.... partnership could not be regarded as income attributable to the benefit of the partnership includible under section 64(1)(iii) of the Act in hands of the assessee (minor's father) ?" The statement of the case shows that the monies had in fact been contributed by the minor towards the capital of the firm and the interest received by the minor was on the capital standing to the credit of the minor. The minor had been admitted to the benefits of the partnership which was reconstituted under a deed dated April 16, 1975, and the preamble to which deed contained a statement that the minor was being admitted in consideration of capital being forthcoming. The partnership deed also provided that the capital standing to the credit of the partners....

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....at the amounts contributed by the minor as the share of the capital of the firm were monies which had been received by way of gifts from persons other than the assessee and, therefore, any interest received on that amount cannot be included in the assessable income of the father. The source from which the minor obtained the funds of making capital contribution to the firm in which the minor is admitted to the benefits of the partnership is not of any relevance for the purposes of invoking section 64(1)(iii) of the Act. So long as the benefit derived is the direct consequence of the minor's admission to the benefits of the partnership, such benefit has to be included in the assessment of the parent as provided in section 64 of the Act. Le....