COMMISSIONER OF INCOME TAX Vs. D SELVARAJ

JUDGEMENT

(1.) THE two questions of law referred at the instance of the Revenue in respect of the assessee's assessment years 1981-82 and 1982-83 are :

(2.) THE assessee, one D. Selvaraj is the karta of a Hindu undivided family consisting of wife and a minor son. THEre was a partition between Selvaraj and his minor son on June 18, 1978, and in the partial partition, the credit balance standing in the books of the firm was allocated equally between the two coparceners. THE Income-tax Officer, by an order passed under Section 171 of the Income-tax Act, 1961, recognised the claim of partial partition and passed an order accepting the partial partition. THE assessee, on the basis of the order of the Income-tax Officer, claimed that only 50 per cent. of the share income should be assessed in the hands of the joint family and the balance 50 per cent. should be assessed in the hands of the minor son. THE Income-tax Officer did not agree and assessed the entire share income in the hands of the family on the ground that only the balance in the books of the firm was partitioned and not the share of the interest in the firm.