COMMISSIONER OF INCOME TAX Vs. RUKMANAND KEDIA

JUDGEMENT

(1.) THE assessee, Shri Rukmanand Kedia, was a partner of a firm, Messers. Nathu Ram Harakh Chand. His son, Vishnu Kumar, a minor, was admitted to the benefits of partnership in the firm. Assessment proceedings for the year 1960-61 were taken against the assessee as an a sum of Rs. 13,188 received by the son from the firm. This amount included a sum of Rs. 5,791 credited to the account of the son by way of interest. THE Appellate Assistant Commissioner, upon appeal by the assessee, excluded the amount of interest from the income of the assessee. THE Income-tax Appellate Tribunal endorsed the view taken by the Appellate Assistant Commissioner. It found that the sum of Rs. 5,791 represented interest earned by the son on the capital contributed by him.

(2.) THE provisions of section 16(3)(a)(ii) are as follows :