9911796707
TMI Blog1981 (12) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... e investments made with the firm was assessable in the hands of the mother under section 64(1)(iii) of the Income-tax Act, 1961. 2. The assessee's minor son, master Kamlesh Kumar, was admitted to the benefits of partnership in Dauji Industries, Hathras. The share came to Rs. 33,505 and it was assessed in the hands of the mother. 3. The assessee came in appeal before the AAC who noted that besi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partnership, then the interest income would not be liable to be included. There was in this case nothing in the partnership deed which required the minor to invest capital. In spite of it since the minor deposited the money with the firm, it would show that he found it profitable to make the investment with the firm to earn interest in the same manner as any other person would do. Therefore, the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l representative and the counsel for the assessee. On pages 1-4 of the paper book a copy of the deed of partnership dated2-4-1974has been placed before us. There were earlier two partners, Smt. Rattan Devi and Smt. Munni Agarwal, and they admitted Kamlesh Kumar, minor, through his guardian, mother Smt. Shushila Devi, to the benefits of partnership. In fact, we were informed that the minor had been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the paper book is the balance sheet of the firm as on7-4-1976. It shows that Smt. Rattan Devi had invested Rs. 41,362, Smt. Munni Agarwal Rs. 1,05,173 and the minor Kamlesh Kumar Rs. 1,10,705 in the firm. These amounts are stated to be the capital accounts of the two partners and the minor, respectively. It was also stated before us on behalf of the assessee, on our enquiry, that the minor had dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etween the admission of the minor to the benefits of the partnership and the interest earned on the initial capital introduced by the minor. This is not a case where no such connection has been established between the interest earned and the admission of the minor to the benefits of partnership. The rulings relied upon and cited on pages 14-16 of the paper book do not, therefore, help the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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