9911796707
TMI Blog1943 (4) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... a reference made by the Commissioner of 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 199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee is not a partner, but his minor son Jagmohandas 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 par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was registered under Section 26A of the Income-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 Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rms are closely connected, and the personality 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 min ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee, having a share in the first firm, 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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