1976 (4) TMI 23

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..... e did not arise from their admission to the benefits of partnership and that the profit shares were diverted by an overriding title ?" One Shahul Hameed was carrying on business. He died on 25th May, 1965, leaving eight heirs consisting of his widow, one major son, two minor sons, two major daughters and two minor daughters. After the death of Shahul Hameed, the several heirs left by him were entitled to the following shares under the Muslim law : S. M. Habibullah (major son) ... 14 shares S. S. Kalimullah (minor son) ... 14 " Ashrof Ali (minor) ... 14 " Jaina Bibi (widow) ... 10 " Rahila Begum (married daughter) ... 7 " Rahimunnisa Begum (do) ... 7 " Vahirunnisa (minor) ... 7 " Nurunnisa (minor) ... 7 " On 2nd .....

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..... w, the Income-tax Officer included the share income of her minor children in respect of the said firm as if it was assessable in her hands as per the provisions of section 64 of the Income-tax Act, 1961, on the footing that the minors were admitted to the benefits of partnership. Two appeals came to be filed, one by Jaina Bibi and the other by the firm in which the common contention was that the minors had not been admitted to the benefits of the partnership. With reference to the assessment on Jaina Bibi, the contention was that the amount referable to the minors should not be assessed in her hands and in the case of the firm the contention was that 49 out of 80 shares reserved for the heirs who were not included in the firm should firs .....

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..... he Tribunal's order and in the statement of the case is not quite correct. In the Tribunal's order and in the statement of the case, it is stated : "Whereas the minors are entitled to share the profits alone and cannot bear the losses". No such statement occurs in the Tamil document, which is annexure "A" to the statement of the case. What is provided in the document is that with reference to heirs, who were not the partners, there will be a separation or setting apart of the share of profits and that after excluding the said 49 shares, the balance alone will be the subject of division among the three partners who constituted the firm. As far as the losses are concerned, it is clearly stated that only the three partners who constituted the .....

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