MADHO PRASAD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessees the Income-tax Appellate Tribunal (Delhi Bench 'C') has, under Section 256(1) of the Income-tax Act 1961, referred to this court the following question of law :

(2.) THE material facts are these: THE assessees, Sahu Madho Prasad and Sahu Govind Prasad, are partners of a firm by name Arvind Cold Storage. THE minor son of each of them had been admitted to the benefits of partnership in this firm. Each of them was the karta of his joint family and was a partner in the aforesaid firm on behalf of his joint family. THE share of each of these partners in the said firm was assessed to tax in the hands of the respective joint family. In the assessment years 1967-68 to 1969-70, the share of each of the minors in the profits of the firm was treated as the income of his father in his (the father's) individual status and was assessed accordingly.

(3.) THE aforesaid portions of Section 64 of the Act are practically identical with the corresponding portions of Sub-section (3) of Section 16 of the Indian Income-tax Act, 1922.