COMMISSIONER OF INCOME TAX Vs. M SADASIVAMURTHY

JUDGEMENT

(1.) THE assessee is a partner. THE assessee is assessed in the status of an individual. For the assessment years 1976-77, 1977-78 and 1978-79, the assessee is a partner of a firm styled as Annama-layar Match Works, Sivakasi, in his capacity as a "karta" of the Hindu undivided family. His wife is also a partner in the said firm. THE Income-tax Officer, who completed the assessment of the assessee for the assessment years in the status of an individual, included the share income arising to the assessee's wife under the provisions of Section 64 of the Income-tax Act, 1961. THE assessee appealed to the Appellate Assistant Commissioner who allowed the appeals.

(2.) THE Department carried the matter in appeal before the Income-tax Appellate Tribunal and the Appellate Tribunal also held that the provisions of Section 64 of the Income-tax Act cannot be invoked to club the wife's income in the assessee's hands in his individual capacity. On the application filed by the Revenue, the following common question of law has been referred by the Appellate Tribunal for our consideration under Section 256(1) of the Income-tax Act :

(3.) ACCORDINGLY, we answer the common question of law referred to us in the affirmative and against the Department.