KALAWATI DEVI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference relates to the assessment years 1962-63, 1963-64 and 1964-65. The question of law referred for our opinion is :

(2.) ONE Sheo Behari Avasthi was a partner in Messrs. Sheo Behari Avasthi and Company along with his wife Smt. Kalawati Devi and another person. He had a 6 annas share while his wife, Smt. Kalawati Devi, had a four annas share. He died on 13th March, 1952, Soon after, on 2nd April, 1952, the partners of the firm executed a fresh partnership deed under which Smt. Kalawati became the owner of 10 annas share. Though Sheo Behari Avasthi had left a minor son, no share was granted to him by this partnership deed. It appears that another son was born to Smt. Kalawati Devi some time after the death of Sheo Behari Avasthi, but even after that event no share was given to the minor sons. From 1952 to 1956 the share income representing 10 annas share in relation to the firm was being assessed in the hands of Smt. Kalawati Devi as an individual. On 13th October, 1956, the share capital of Rs. 45,172 originally belonging to Sheo Behari Avasthi, but which till then had been entered in the name of Sheo Behari Avasthi, was divided into two parts, each half being entered in the name of the two sons. On 11th August, 1958, the two minors were admitted to the benefits of the partnership with 19 p. share each. This fact is recorded in the partnership deed dated 20th September, 1958. Since 1958 till 1962 the share income of the two sons was assessed in their hands individually while the share income of the mother was assessed in her hands.

(3.) THE Tribunal has relied upon the following points in support of this finding :