RADHEY SHYAM DALMIA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) In respect to the assessment year 1977-87, the Income-tex Tribunal has referred the following question to this Court:

(2.) Briefly stated the facts are that three minor children of the assessee viz., Ramesh kumar Dalmia. Harsh Kumar Dalmia and Swarna Lata Dalmia were admitted to the benefits of two partnership firms viz., Vikas Textile Agency and Associated Sales Company. While the assessee was a partner in Vikas textile Agency, but of the other firm, he was not a partner.

(3.) These minors were not only paid the share of profits but they also received interst in the firm on the accumulated profits and it is this interest which was assessed in the hands of the assessee by the Income-tax Officer, by invoking the provisions of Section 64(l)(iii)