PRITI LATA SAMANTA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under Section 256 of the Income-tax Act, 1961. Smt. Priti Lata Samanta, the assessee, is a widow and a partner in a firm known as Messrs. Students Friends. Her two minor sons were admitted to the benefits of the firm in which the assessee herself is a partners. In the assessment year 1962-63, the Income-tax Officer added the share of the income of the two minor sons in the income of the assessee. The assessee went up in appeal and urged that the word "individual" as used in Section 64 of the Act refers only to the male of the species as held by the Supreme Court in the case of Commissioner of Income-tax v. Sodra Devi, 1957 32 ITR 615; [1958] S.C.R. 1 (S.C.) and therefore the Income-tax Officer was wrong in adding the income of the minor sons, derived in the partnership business, in the income of the assessee. The Appellate Assistant Commissioner rejected the plea. The assessee then filed an appeal before the Appellate Tribunal. Before the Tribunal it was conceded that the decision of the Supreme Court in Sodra) Devi's case was under Section 16 of the Income-tax Act of 1922, whereas the present case was governed by Section 64 of the 1961 Act. The wordings of Section 64 of the 1961 Act are different from the wordings of Section 16 of the 1922 Act, and that it is now not open to the assessee to contend that the word "individual" as occurring in Section 64 is confined to a male of the species only. It was, however, urged that the word "individual" would not include a widow though it may include a husband or wife, and therefore the income of the minor son could not be added to the income of his widowed mother. THIS argument did not find favour with the Appellate Tribunal and the Tribunal upheld the inclusion of the income of the minor sons in the income of the assessee. The assessee, thereafter, made an application for referring a question of law to the High Court for its opinion. The Tribunal found that inasmuch as a question of law did arise in the case, it referred the following question for the opinion of this court:

(2.) SECTION 64 of the Act runs as follows :

(3.) WE are therefore of opinion that the income-tax authorities were right in holding that income derived by a minor child because of his admission to the benefits of a partnership firm in which his widowed mother is also a partner can be added in the income of the widow while computing her total income.