1982 (6) TMI 46

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... January 27, 1982, and quash the same. The assessee had returned an income of Rs. 41,085 for the assessment year 1976-77. The assessment was completed on September 9, 1977, on total income of Rs. 44,450. The income as returned by the assessee comprised of three items: Rs. 1. Property income 50 2. Share income earned by his three minor sons from M/s. Rajendrakumar Bafna Co., Guntur, under sec. 64 of the I.T. Act 40,930 3. Other sources-interest 105 ------ 41,085 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the I.T. Act only a rectification of the quantum of the tax liability can be ordered and no income originally included in the taxable income could he excluded. The Appellate Tribunal did not express any opinion on the main contention that unless the individual assessee's income is above the taxable limit, the assessee's minor child's income from the admission of such minor to the benefits of partnership in a firm cannot be computed. Inasmuch as the Appellate Tribunal has held that it cannot go into the merits of the case, a reference could not be sought and the assessee has, therefore, invoked the jurisdiction of this court under art. 226 of the Constitution. The relevant provision of s. 64 of the I.T. Act which directs the inclusion of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... pport the distinction sought to be drawn by the learned counsel for the assessee-petitioner on the ground that such minor's income can be included in the individual assessee's income only in case the assessee has, as an individual, income above the taxable limit. We do not find any warrant to draw such a conclusion either on the wording of s. 64(1)(iii) of the I.T. Act or on any principle of law. On the contrary this provision was inserted by the T.L. (Amend.) Act, 1975, to bring all such income to tax with a View to plug the evasion of tax by the assessees by transferring assets to the minors or by deriving income admitting the minors to the benefits of partnership in a firm. We are, therefore, not persuaded to accept the contention of the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X