1943 (4) TMI 9

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..... f Income-tax raising the following question:- Whether there was any evidence before the Income-tax Officer and/or the Appellate Assistant Commissioner so as to warrant the views each of them has taken, namely, that the said sum of ₹ 1,600 being the share of the minors in the profits of the said firm of Eameshchandra Co., for the Samvat year 1994 could be said to be the income of the pe .....

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..... mohandas is a partner, and so is his second minor son Eameshchandra. His brother, who is a partner in the first firm is a partner in the second firm; and one of the outside parties, who is a partner in the first firm is a partner also in the second firm; and a brother of each of the other two outside parties, who are partners of the first firm, is a partner in the second firm. So that obviously th .....

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..... ome-tax Act showing the minor sons as partners, and, therefore, they fall to be assessed under Section 23(5). But I will assume that, so far as registration is concerned, it would be open to the Income-tax Officer to treat the income of the minors as part of the income of the assessee. The facts relied on as justifying the finding of the Income-tax Officer, which was confirmed, as is usual, by .....

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..... ality of the two firms is, as I have mentioned, also closely connected. Now, all those facts undoubtedly give rise to a suspicion that the two minor sons are really nothing but nominees of the assessee. The question really is whether those facts not only give rise to a suspicion, but justify the inference of fact drawn by the Income-tax Officer that the minors were mere nominees of the assessee. I .....

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..... , must necessarily have had a share in the second firm. In my opinion, all the facts relied on by the Commissioner do not afford any evidence on which he could properly come to the conclusion either that the assessee is a partner in the second firm, or that the minor sons of the assessee are mere nominees of their father, and that their income derived in the second firm is really his income. Th .....

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