1986 (5) TMI 10

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..... assessee under section 64 of the Income-tax Act ? The assessee is a partner in the firm, M/s. Ramdhan Agrawal. She was being assessed in the status of an individual. Her husband, Shri Ramdhan Agrawal, was also a partner in the firm, M/s. Ramdhan Agrawal, as a karta of the Hindu undivided family and, therefore, Shri Ramdhan had been representing it in his capacity as karta of the Hindu undivided family. Therefore, the assessee contended that her income cannot be clubbed with that of the income of her husband as a partner in the firm, M/s. Ramdhan Agrawal, since he was a partner in his capacity as karta of the Hindu undivided family. The Income-tax Officer was of the view that the Hindu undivided family could not enter into a partnership a .....

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..... ncome of her husband was rightly clubbed with that of her income as a partner of the firm. The cases relied on by the assessee, i.e., Madho Prasad v CIT [1978] 112 ITR 492 (All), CIT v. Sanka Sankaraiah [1978] 113 ITR 313 (AP) and Dinubhai Ishwarlal Patel v. ITO [1979] 118 ITR 122 (Guj) were clearly distinguishable because those cases were concerned with the assessment of the Hindu undivided families and not of individuals under section 64. Thereafter, the assessee made an application for reference of the aforesaid question. Under section 64(1)(i) of the Income-tax Act, in computing the total income of an individual, there shall be included all such income as arises directly or indirectly to the spouse of such individual from the membersh .....

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..... e which is assessable in the hands of the Hindu undivided family. However, the karta remains an individual though the income which he earns in a representative capacity is taxable in the hands of the Hindu undivided family. The karta is also assessable in his individual status. Section 64 confines itself to such individual assessment. It seeks to add the income of the spouse or minor child in the computation of income in the individual assessment. If the share income of the individual from the partnership firm is liable to be included while computing such individual's total income, it may be so included. That will be when the individual is a partner in his personal capacity. But if he is a partner in a representative capacity, with the resu .....

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