1984 (12) TMI 16

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....HA SHETTY J.-Under section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following common question in these two references: "Whether, on the facts and in the circumstances of the case, the Incometax Appellate Tribunal is right in law in holding that the income received by the minor children from the firm is income of the assessee under section 64(1)(iii) of the Income-tax Ac....

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.... Income-tax Officer rejected that claim and brought to tax the share income of the minors in the hands of the assessee. The assessee appealed and succeeded. The Commissioner of Income-tax (Appeals) found from the partnership deed that from October 1, 1975, the said two minors had ceased to be partners for the benefits of the partnership and what they were entitled to when the books were closed ....

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....al, there shall be included all such income as arises directly or indirectly . ...... (iii) to a minor child of such individual from the admission of the minor to the benefits of partnership in a firm." It is not in dispute that the minors were admitted to the benefits of the partnership and they received the share income for the period up to their continuance in that partnership. Section 64....