1979 (5) TMI 26

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..... the insurance company was credited in the account of minor in the books of Smt. Usha Jajoo. Admittedly policy premius had been paid by the assessee on behalf of Kumari Jaishree all through. Interest that accrued after the date of deposit was also credited to the account of Kumari Jaishree in the books of Smt. Usha Jajoo. The ITO took the view that the interest income which has arisen to the minor upto 4th March, 1976 was includible in the hands of the assessee who is the mother of the minor under the provisions of s. 64(1)(v) of the Act, 1961. Interest income that accrued to Kumari Jaishree from 5th March, 1976 when she became major, has not been included in the hands of the assessee. The case of the assessee is that interest income has ari .....

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..... books of Smt. Usha Jajoo when Kumari Jaishree had already became major, Shri Kapoor argues that the entire interest income of the year had arisen to Kumari Jaishree and, therefore, income was includible in the hands of the assessee. In support of his contention he relied on a Supreme Court decision in the case of E.D. Sassoon Co. Ltd. others vs. CIT, Bombay(1) and the decision of Bombay High Court in the case of Bhogilal Laharchand(2). The authorities below could not be persuaded by the rule laid down in these authorities. In the case of Sassoon Co.(1) S was the managing agent of the another company U. Under the managing agency agreement S was entitled to receive as its remuneration at a certain percentage per annum on the annual net .....

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..... 1943, a father carried on business in partnership with his sons, some of whom were minors. One of the minors attained majority on 22nd Aug., and as concluded to continue as a partner a fresh partnership deed was executed on 20th Aug., 1950. Under both the partnership deeds accounts were to be taken and Profit and Los ascertained on Dewali day of each year. The minor son who attained majority died on 31st Aug., 1950. The share of the deceased son in the profits as ascertained on 31st Aug., 1950 was Rs. 2,64,450. The proportionate profits on the basis upto 22nd Aug., 1950 when the son attained majority, was Rs. 2,49,459 and the IT authorities included this amount in the assessment of the father under s. 116(3) of the IT Act, 1922 (analogous t .....

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