1987 (6) TMI 30

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.... J.-By this reference under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as " the Act "), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the interest earned by a minor on his capital invested in t....

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....so far as the amount of interest on the capital invested in the aforesaid firms by the minor sons was concerned, that could not be taxed in the hands of the assessee under the provisions of section 64(1)(iii) of the Act. This contention was not upheld by the Income-tax Officer and, on appeal, the Appellate Assistant Commissioner upheld the finding of the Income-tax Officer in this behalf. On furth....

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....nstance of the Revenue that the aforesaid question of law has been referred to this court for its opinion. Learned counsel for the Revenue contended that a similar question had come up for consideration before this court in CIT v. Smt. Nirmala Devi [1987] 166 ITR 253. As observed by this court in that case, the question referred by the Tribunal was refrained to bring out the real issue between ....

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....ar and whatever might have been the object of introducing that clause, the said clause did not leave any room for doubt that it had been made obligatory that if the income arising to the minor child from partnership firm was referable to the fact of admission of that child to the benefits of the said partnership firm, then such income was includible in the total income of the assessee and the ques....