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TMI Blog2004 (8) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... could not be included in the assessee's income u/s 64(1)(iii) - Tribunal has committed illegality in holding that the income earned on the deposits made by the two minors in the firm, Jahanganj Cold Storage, was not includible u/s 64(1)(iii) - - - - - Dated:- 3-8-2004 - Judge(s) : R. K. AGARWAL., K. N. OJHA. JUDGMENT The Income-tax Appellate Tribunal, Allahabad, has referred the following three questions of law under section 256(1) of the Income-tax Act, 1961, hereinafter referred to as "the Act" for the opinion of this court: "1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in holding that the investments made with the firm, M/s. Jahanganj Cold Storage, by the minors, Aji ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e capacity of an individual, he had been regularly filing his returns and was being assessed as a Hindu undivided family. The minors were being assessed separately. For the assessment years in question the assessee filed his return in the status of individual also. For the assessment year 1977-78, the income returned by him was the income earned by the minors, Ajit Kumar and Sujit Kumar, from M/s. Jahanganj Cold Storage and Vaibhav Kumar from M/s. Ratan Cold Storage. Agricultural income was also returned. In Part III of the return the assessee claimed that the income returned did not arise from the admission of the minors to the benefits of partnership and as such it was not liable to be included under section 64 of the Act. For the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have heard Sri A.N. Mahajan, learned counsel for the Revenue. Nobody has appeared on behalf of the respondent-assessee. Sri Mahajan, learned counsel for the Revenue, submitted that it is not in dispute that the minors, namely, Ajit Kumar and Sujit Kumar had been admitted to the benefits of partnership in the firm, Jahanganj Cold Storage, and, therefore, all such income as arises directly or indirectly to these minors out of the firm is liable to be included in the total income of the respondent-assessee. He submitted that in view of section 64(1)(iii) of the Act, which has been substituted by the Taxation Laws (Amendment) Act, 1975 with effect from April 1, 1976, any income which arises directly or indirectly to a minor who is admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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