TaxTMI 
TaxTMI 
1995 (8) TMI 16
X X X X Extracts X X X X
X X X X Extracts X X X X
...., the following question of law has been referred by the Income-tax Appellate Tribunal, Bench-A, Hyderabad, under section 256(1) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is correct in law in holding that the higher rates of income-tax specified by sub-paragraph II of paragraph I of the First Schedule to the Financ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d family. The Income-tax Officer after taking into consideration sub-paragraph II of the First Schedule to the Finance Act, 1981, found the total income of the Hindu undivided family exceeded the minimum taxable limits and hence subjected the assessee-Hindu undivided family to a high rate of income-tax. On appeal the assessee was unsuccessful. The assessee filed further appeal to the Income-tax A....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is a partner in the firm where the two minor children are also admitted to the benefits of the partnership in the firm. The income of the wife was only Rs. 5,730 and the share income of the minors was Rs. 1,03,315. Under section 64(1)(iii) of the Act the income of the minor children of an individual, who are admitted to the benefits of the partnership in a firm shall be included in the total incom....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s . . . . ." For application of the higher rate of tax, what is to be seen is that at least one member of the Hindu undivided family should have total income (emphasis added) exceeding Rs. 12,000. If the word " total income " is construed as individual income it would be reading something alien to the provision. It is a well-settled principle of interpretation that a provision of law should be in....