COMMISSIONER OF INCOME TAX Vs. L N HORKERI

JUDGEMENT

(1.) THIS is a reference under section 256(1) of the Income-tax Act, 1961. The question referred is as under :

(2.) THE assessee is an individual. He has two minor sons who were admitted to the benefits of the partnership in a firm called M/s. Channabasaveshwara Trading Co. He had no separate income of his own. He, therefore, did not include in his return the share income of the minor sons accrued to them from the firm. THE Income-tax Officer thought that it was illegal to exclude the minor's income. He assessed the share income of the two minors in the hands of the assessee as required under section 64(1)(iii) of the Income-tax Act.

(3.) THE question raised for our opinion is short, but interesting. THE answer to the question turns on the interpretation to be placed on the relevant provisions of section 64(1) of the Income-tax Act :