JAWAHARLAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this reference under Section 256(1) of the I.T. Act, 1961 (hereinafter referred to as "the Act"), the Income-tax. Appellate Tribunal, Indore Bench, Indore, has referred the following questions of law for the opinion of this court:

(2.) WHETHER, under the facts and circumstances of the case, the Tribunal was correct in law in confirming the order under Section 143(1)/147 clubbing the share incomes of the two minor children, while the same was not shown ?

(3.) NOW, in view of the provisions of Section 64 of the Act, the share income of the minors in the firm has to be clubbed with the income of the assessee and has to be assessed in his hands. If the minors have been assessed separately they may move the Commissioner under Section 264 of the Act for a cancellation of their assessments in view of the fact that the income derived by them from the firm has been clubbed in the hands of the assessee. We may also state that the learned counsel for the Department stated before us that the Commissioner of his own motion will take steps to cancel the orders of assessment made against the minors,