LAWS(APH)-2003-4-27

COMMISSIONER OF INCOME TAX Vs. T SURYAMANI KOTHAVALASA

Decided On April 24, 2003
COMMISSIONER OF INCOME-TAX Appellant
V/S
T. SURYAMANI KOTHAVALASA Respondents

JUDGEMENT

(1.) AT the instance of the Revenue, the Income-tax Appellate Tribunal, Hyderabad "A" Bench, Hyderabad (for short, "the Tribunal"), referred the following questions, said to arise out of its order in I. T. A. No. 769 of 1983, dated September 25, 1986, for the assessment year 1978-79 under Section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for the opinion of this court :

(2.) THE facts leading to the above reference, in brief, are as follows :

(3.) SRI S. R. Ashok, learned standing counsel for the Income-tax Department, contended that the Tribunal has committed an error in holding that the income derived from the firms by the minor, who was admitted to the benefits of the firm, should be assessed in the hands of the Hindu undivided family. According to learned standing counsel, when once a minor is admitted to the benefits of the partnership firm, the income derived thereunder belongs to the minor as an individual, irrespective of the consideration for such income and, therefore, it is includible in the income of the parents of the minor individual. Therefore, the Assessing Officer was justified in including the income derived by the minor in the income of the mother.