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TMI Blog1988 (5) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... u undivided family is not sustainable ?" The relevant assessment year is 1976-77. The assessee is the Hindu undivided family represented by its karta, Abhay Kumar. Nitesh Kumar, minor son of the said Abhay Kumar, was admitted to the benefits of the partnership in a firm during the relevant period. The question was whether the share income of a minor, Nitesh Kumar, could be clubbed with the income of, the assessee-Hindu undivided family represented by Abhay Kumar as karta for the purpose of computing the total income of the assessee-Hindu undivided family in accordance with section 64(1)(iii) of the Act. It is not for the purpose of clubbing the share income of the minor, Nitesh Kumar, with the income of his father, Abhay Kumar, as an indiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dividual" and Hindu undivided family are distinct persons or distinct units for the purpose of assessment under the Act. Unless the context otherwise requires, the meaning given in this definition is to be applied to the word "individual" used in section 64. In our opinion, there is nothing in the context requiring departure from the ordinary meaning of the word "individual" and the words "minor child of such individual" occurring in clause (iii) reinforce the conclusion that the word "individual" used in sub-section (1) and clause (iii) thereof mean only a parent of the minor child whose income is to be clubbed. In our opinion, the plain words of this provision do not admit of any ambiguity and it is clear that the provision can apply only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961, by substitution of the word "spouse" for the word "wife" occurring in section 16(3) of the Indian Income-tax Act, 1922, which had given rise to the controversy in Sodra Devi's case [1957] 32 ITR 615 (SC), whether the word "individual" meant only the male and not also the female. However, substitution of the word "spouse" for the word "wife" has put the matter beyond controversy by indicating that the "individual" contemplated in section 64(1) of the 1961 Act can be either a male or a female. The other decision of the Supreme Court is in Hirday Narain v. ITO [1970] 78 ITR 26. It was held therein that section 16(3) (a) (ii), which is the corresponding provision in the 1922 Act, did not apply for clubbing the income of the minor chi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igh Court in Sahu Govind Prasad's case [1983] 144 ITR 851, itself accepts the dual capacity of the "individual" and it also indicates that it is in the karta's assessment as an "individual" and not in his representative capacity on behalf of the Hindu undivided family that the minor's income is to be clubbed. With respect, these observations in the Allahabad decision also support the construction we have made of section 64(1)(iii) which is in accord with the view of the other High Courts as already indicated by us. As a result of the above discussion, we are of the opinion that the karta of the Hindu undivided family has a dual capacity, i.e., as an individual and in a representative capacity as karta of the Hindu undivided family ; and it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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