1995 (8) TMI 16

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.... J. --- At the instance of the assessee, 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 paragr....

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....o is a member of the assessee-Hindu undivided 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 ass....

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....It is not in dispute that the wife of the karta 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 partnershi....

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....nt year commencing on the first day of April, 1981, exceeds . . . . ." 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 prin....