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TMI Blog2001 (8) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... t interest on the two amounts of Rs.95,000 and Rs.96,001 lying in the accounts of the two minors, Shri Roop Kishore and Shri Satish Chand Rastogi, respectively, in the partnership firm of Satish Chand Trilok Chand was not includible in the hands of the assessee under section 64(1)(iii) of the Act of 1961 for the assessment year 1976-77? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in sustaining the inclusion of the interest in the hands of the assessee on the balance amount of Rs.53,237 in the account of Shri Satish Chand Rastogi with the said partnership firm of Harish Chand Trilok Chand under section 64(1)(iii) of the Act of 1961 for the assessment year 1976-77?" The dispute r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relatable to loan or current account could be included in the income of the assessee under section 64(1)(iii) of the Act. The Income-tax Officer rejected the contention and held that section 64(1)(iii) covered both the situations projected by the assessee. He, therefore, included the entire interest income in the hands of the assessee. The matter was carried in appeal before the Commissioner of Income-tax (Appeals). The said authority held that the assessee was required to submit a copy of the accounts of her two minor sons from the books of account of the firm and from the details available, it was clear that the two minors had a single capital account for each of them in the firm and they had no loan or deposit account in their names in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 444 was rightly included in the hands of the assessee under section 64(1)(iii) of the Act. The assessee's appeal was partly allowed. Both the assessee and the Revenue made requests for reference of the questions which have been referred for the opinion of this court. The first question is at the instance of the Revenue and the second question is at the instance of the assessee. We have heard learned counsel for the parties. According to learned counsel for the assessee, within the scope of section 64(1)(iii) interest on the balance amount was not to be included. According to learned counsel for the Revenue, interest on the sums by way of deposit clearly falls within section 64(1)(iii). Therefore, the Tribunal was not correct in its view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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