LAWS(APH)-1995-8-59

GANJI KRISHNA RAO Vs. COMMISSIONER OF INCOME TAX

Decided On August 18, 1995
GANJI KRISHNA RAO Appellant
V/S
COMMISSIONER OF INCOME TAX Respondents

JUDGEMENT

(1.) At the instance of the assessee, the following question of law has been referred by the Tribunal, Bench-A, Hyderabad, under s. 256(1) of the IT Act, 1961 :

(2.) The reference arises out of the order of the Tribunal in ITA No. 821/(Hyd) of 1984, dt. 22/07/1985, in respect of the asst. yr. 1981-82.

(3.) The assessee is an HUF consisting of the Karta, Sri Krishna Rao, his wife and minor daughter. The Karta has two other children who are also minors. There was a partial partition between the Karta and the two minor sons. The minor sons are partners in a firm, Ganji Venkanna & Sons, in which the wife of the Karta is also a partner. In the assessment of the Karta's wife, the income of the minor sons was clubbed with the income of their mother who is a member of the assessee-HUF. The ITO after taking into consideration sub-paragraph II of the First Schedule to the Finance Act, 1981, found the total income of the HUF exceeded the minimum taxable limits and hence subjected the assessee-HUF to a high rate of income-tax.