ARUN KUMAR SARRAF Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Tribunal has referred the following question of law for the opinion of this court:

(2.) THE question relates to the assessment years 1968-69 and 1969-70. Arun Kumar, the assessee, was a minor. He was admitted to the benefits of partnership in the following three firms :

(3.) FEELING aggrieved, both parties filed cross-appeals before the Tribunal. The Tribunal held that there was no specific provision in the Income-tax Act, 1961, exempting the share of the minor from being included for rate purposes in his income, even though it has been taxed in the hands of his father or mother. Such share income was exempt from being taxed by reason of a fiction, fn view of Section 2(45) read with Section 5 of thy Act "total income" would include income from whatever source it accrued. Sections 66, 86 and 110 of the Act were also not applicable. The Tribunal relied upon its earlier order in the case of Anil Kumar in I.T.A. No. 16099 of 1967, decided on 4th April, 1968. It held that the share income of the minor from the first two firms was liable to be included in the income of the minor assessee for rate purposes. At the instance of the assessee the Tribunal has referred the question of law mentioned above for our opinion.