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TMI BlogScope and applicability of sub-section (1) explained with reference to Tribunal decision in Lalchand Bhalla's caseX X X X Extracts X X X X X X X X Extracts X X X X ..... and scope of sub-section (1) of section 64. An extract of the said decision of the Appellate Tribunal is enclosed [printed here as Annex]. Circular : No. 174 [F. No. 237/20/75-A PAC-II], dated 12-8-1975 . ANNEX - EXTRACTS FROM TRIBUNAL'S DECISION REFERRED TO IN CLARIFICATION The other item pertains to the income amounting to Rs. 20,301 that directly arose to the minor Rajinder Mohan during the year of account under consideration from his having been admitted to the benefits of partnership in the firm Permanand Bhalla Co. to the extent of 20 per cent share in the firm's profits. The assessee is the father of the said minor and is one of the three adult partners in the said firm. Each of the adult partners purports to rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he said approach for interpreting the meaning and scope of section 64(1)( ii ) we are making out a new case which was not present to the mind of the learned Commissioner himself and that it would not be correct for the Tribunal to sustain the Commissioner's order on a ground not mentioned in his order. We are afraid, the Commissioner's order is rather brief and we are unable to reach therein that he purported to base his order, so far as the item of minor's income is concerned on any other ground which ground according to the assessee is unsustainable. We, therefore, do not agree that a new case is being made out by us. A reference to section 64(2) would, on the other hand, suggest that the Legislature was fully conscious that an individual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a deeming provision like the instant one. We, however, agree with the learned departmental representative that section 64(1) is not open to two meanings so far as the present controversy is concerned as to the Income-tax Officer's or the learned Commissioner's order being erroneous is concerned. The assessee is a partner in the firm in question. He is a partner as an individual as a Hindu undivided family could not in law be a party to an agreement of partnership. The fact that the Hindu undivided family has the sole beneficial interest in the share income earned by the assessee individual firm the said firm does not exclude the applicability of section 64(1) to the case. - Circular - Trade Notice - Public Notice - Instructions - Office ..... X X X X Extracts X X X X X X X X Extracts X X X X
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