1974 (2) TMI 16

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Income-tax Act, 1961, could he included in the other income of the assessee for rate purposes ? " The question relates to the assessment years 1968-69 and 1969-70. Arun Kumar, the assessee, was a minor. He was admitted to the benefits of partnership in the following three firms : 1. M/s. Krishna Lal Rishikesh. 2. M/s. Parmanand Stores. 3. M/s. Sarraf Brothers. In the firm, M/s. Krishna Lal Rishikesh, the assessee's father, Sri Rishikesh, was a partner. In the firm, M/s. Parmanand Stores, the assessee's mother was a partner. The assessee's share of profit in the first firm was included in the total income of his father and taxed as such. Similarly, the minor's share income from the second firm was included in the income of his....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... view of section 2(45) read with section 5 of the Act " total income " would include income from whatever source it accrued. Sections 66, 86 and 110 of the Act were also not applicable. The Tribunal relied upon its earlier order in the case of Anil Kumar in I.T.A. No. 16099 of 1967, decided on 4th April, 1968. It held that the share income of the minor from the first two firms was liable to be included in the income of the minor assessee for rate purposes. At the instance of the assessee the Tribunal has referred the question of law mentioned above for our opinion. The share income of the minor assessee from the firms has been included in the total income of his father and mother under section 64(2) of the Income-tax Act, 1961, for rate ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the total income of the assessee. The share income of a minor assessee covered by section 64 is not an income on which no tax is payable under Chapter VII. Therefore, such income cannot be aggregated or included in the total income of the minor-assessee under section 66. There is no other provision under the Income-tax Act for aggregation of income for rate purposes. If any particular income is not covered by section 66, it cannot, in our opinion, be included in the total income for rate purposes. The Tribunal held that even though the minor's income was included in the total income of his father under section 64(2), it none the less continued to be the income of the minor for all purposes. If that be so, then the share income in dispute....