1997 (11) TMI 68

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.... his HUF as partner of the firm, M/s Vijay Picture Palace, the income from share of the wife from the same firm could be included in the total income of the assessee individual?" 2. The reference arises out of individual assessments of both the assessees. In the previous year relevant to the asst. yr. 1977-78 both of them were partners in their representative capacity as Karta of their respective HUFs in a firm called 'Vijay Picture Palace' in which their wives were also partners. It was claimed before the ITO that since the assessees were not partners in the said firm in their individual capacity but in a representative capacity as Karta of their HUFs, the income arising to the share of their respective wives from the partnership busine....

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....isen for consideration before the Punjab and Haryana High Court along with another issue, where the view taken was that under s. 64(1)(i) of the Act, the income of the spouse of an individual is to be clubbed with the income of the individual only if he is a partner as an individual in a firm. If such an individual represents the HUF as its Karta and the income in his hands goes to the HUF, then it cannot be treated as the income of the individual under s. 64(1)(i) of the Act. It was pointed out that the word 'assessee' as defined in s. 2(7) of the Act means a person by whom any tax or any other sum of money is payable under the Act and includes every person who is deemed to be an assessee under any provision of the Act. The word "assessee"....