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1. Whether the income arising to the minor sons of the assessee from their admission to the benefits of partnership should be included in computing the total income of the assessee? Analysis: The High Court of Madhya Pradesh addressed the issue of whether the income of minor sons admitted to partnership firms should be included in the total income of the assessee, Manakram. The Income-tax Officer included the income of the minor sons in the assessee's total income as per section 64(1)(iii) of the Income-tax Act. The Appellate Assistant Commissioner affirmed this decision, but the Income-tax Appellate Tribunal reversed it, stating that if the assessee has no income, the minor children's income need not be included. The court analyzed the definition of "assessee" and "total income" under the Act, emphasizing that the income of minor children must be treated as the assessee's income for assessment purposes. The court highlighted that the provisions of section 64(1)(iii) empower the Income-tax Officer to include the minor children's income in the total income of the assessee, even if the assessee's total income is nil. Moreover, the court referred to precedents from the Andhra Pradesh and Karnataka High Courts supporting the inclusion of minor children's income in the assessee's total income. The court rejected the argument that if the parent's income is nil, the minor's income cannot be considered, emphasizing that the assessment is based on the total income of the assessee. The court also disagreed with a decision of the Madras Bench of the Income-tax Appellate Tribunal, stating that interpreting the law to avoid tax avoidance is crucial. The court upheld the assessment made by the Income-tax Officer and Appellate Assistant Commissioner, ruling that the Tribunal erred in excluding the minor children's income from the assessee's total income. In conclusion, the court ruled in favor of the Revenue and against the assessee, holding that the income of the minor sons from their admission to partnership firms should be included in the total income of the assessee.
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