JARDARALI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this reference under s. 256 (1) of the IT Act, 1961 (hereinafter referred to as "the Act"), the Tribunal, Indore Bench has referred the following question of law to this Court for its opinion:

(2.) THE material facts giving rise to this reference, briefly, are as follows : THE assessment year in question is 1979-80 for which the accounting period ended on Diwali, 1978. Till 31st July, 1978, the assessee was a partner in a firm carrying on the business in the name and style of Jardar Banali. THE said firm consisted of two partners. THE other partner of the firm was one Salim Ali. After 31st July, 1978, the wife of the assessee became a partner of the said firm. In framing assessment of the assessee for the asst. yr. 1979-80, the ITO held that the provisions of s. 64 (1)(i) of the Act were attracted and he, there fore clubbed the income arising to the wife from the partnership firm with income of the assessee. Aggrieved by the order of assessment, the assessee preferred an appeal, which was dismissed., A second appeal preferred by the assessee before the Tribunal was also dismissed. Hence, at the instance of the assessee, the aforesaid question of law has been referred to this Court for its opinion.