CHANDANMAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this reference under section 256 (1) of the Income -tax Act, 1961 (hereinafter referred to as 'the Act'), the Income -tax Appellate 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 : While framing the assessment of the assessee for the assessment year 1976 -77, the Income -tax Officer held that as the minor son of the assessee was admitted to the benefits of the partnership firm, Chandan Traders, a sum of Rs. 3,028 received by the minor as interest on the capital invested by him in the said firm, was liable to be clubbed with the income of the assessee in view of the provisions of section 64(1)(iii) of the ct. The appeals preferred by the assessee in that behalf before the Appellate Assistant Commissioner and the Tribunal were dismissed. Aggrieved by the order passed by the Tribunal, the assessee sought a reference and it is at the instance of the assessee that the aforesaid question of law has been referred to this court for its opinion.