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TMI Blog1961 (8) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... ctively engaged as partner in the conduct of the business. The words " where the assessee is a partner " must be given effect to, ever when the income of the minor or the wife is considered under the latter part, and they also point to the same conclusion. In reading the definition in this way, no violence is done to the language of it. The condition that the assessee must have worked actively as a partner is thus applicable also to the latter part of the definition. In our opinion, the High Court was right in the answer which it gave. Appeal dismissed. - - - - - Dated:- 10-8-1961 - Judge(s) : P. B. GAJENDRAGADKAR., K. SUBBA RAO., M. HIDAYATULLAH JUDGMENT The judgment of the court was delivered by HIDAYATULLAH J.---These a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dividual share of the profits from the partnership. In the assessment year, 1950-51, the elder of the two minor sons had become a major, and it was only the share of the remaining minor son which was included in the total income of Marimuthu Nadar. In that year also, he was given earned income relief only on his share of the profits but not on the share of the profits of the minor son, which was included in his total income. Marimuthu Nadar's share of profits was Rs. 12,344 and that of his minor son, Rs. 10,143. Marimuthu Nadar appealed to the Appellate Assistant Commissioner and also to the Appellate Tribunal ; but his appeals were unsuccessful. At the instance of Marimuthu Nadar, the Tribunal referred the above question to the High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income relief could be claimed. Section 2(6AA), omitting portions not relevant, reads as follows : " ' earned income ' means any income of an assessee who is an individual, .... unregistered firm ... (b) which is chargeable under the head ' Profits and gains of business, profession or vocation ' where the business, profession or vocation is carried on by the assessee or, in the case of a firm, where the assessee is a partner actively engaged in the conduct of the business, profession or vocation ; ... and includes any such income which, though it is the income of another person, is included in the assessee's income under the provisions of this Act, but does not include any such income which is exempt from tax under sub-section ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of the business, or is it sufficient if the father or the husband is so engaged ? The words " such income " refer, as we have said, not to the words " any income of an assessee " in the earlier part but to the whole definition of " earned income " given by the Act, before it says what is to be included in it. In other words, by " such income " is meant, earned income determined in the same manner in which that income is to be determined under the earlier part of the definition. The definition requires that " earned income " should be (a) income of an assessee who is, inter alia, an individual or an unregistered firm ; (b) if chargeable under the head " profits and gains of business...... ", the business must be carried on by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngaged in the conduct of the business with her husband or the husband may be dormant. If the wife is actively engaged and the husband is not, on the reading suggested by the assessee, earned income relief would not be admissible to the husband, but on the reading suggested by the department, it would be. If the husband is actively engaged in the business but the wife is not, then according to the reading suggested by the assessee, the husband would be entitled to the earned income relief, but not so, on the reading suggested by the department. Now, the general intention of the section is to give relief in cases where the income of the minor child or the wife is included in the total income of the husband who has to pay income-tax on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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