LAWS(ORI)-1990-8-29

COMMISSIONER OF INCOME TAX Vs. SANYASI MOHAPATRA

Decided On August 10, 1990
COMMISSIONER OF INCOME-TAX Appellant
V/S
SANYASI MOHAPATRA Respondents

JUDGEMENT

(1.) THIS is a reference under Section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), where the statement of case was called for on the following question of law :

(2.) THE assessee is an individual. For the assessment year 1976-77, the previous year tor which ended on March 31, 1376, the assessee had no income of his own. However, his two minor sons, namely, Santosh Kumar and Rama Krishna, were admitted to the benefits of the partnership in a firm styled M/s. Sanyasi Mohapatra and Sons who received a sum of Rs. 12,950 towards their share of profit. THE Income-tax Officer issued notice to the assessee for inclusion of the amount to the nil income for assessment. THE assessee filed a return showing nil income. However, the Income-tax Officer completed the assessment on a total income of Rs. 25,900 which was the benefit derived by his two minor sons from the firm and this was confirmed in appeal. In second appeal, the Tribunal held that in the absence of any income of the assessee, income of the minor sons cannot be included. This is the grievance of the Department in this reference.