COMMISSIONER OF INCOME TAX Vs. RAMESHWARLAL JAWANPURIA

JUDGEMENT

(1.) THIS is a reference made by the Tribunal under Section 256(1) of the Income-tax Act, 1961, seeking the opinion of this court on the following question of law :

(2.) IN the present case, two minor sons of the assessee, namely, R.K. Jawanpuria and P. K. Jawanpuria, were admitted to the benefits of a registered partnership firm, M/s. National Printers. Though, during the assessment year in question, i.e., 1976-77, the petitioner had no income of his own, still the INcome-tax Officer assessed the income of the said two minors derived from the aforesaid firm in the hands of the assessee by applying the provisions contained in Section 64(1)(iii) of the Act. Against this order of assessment, the assessee preferred an appeal to the Appellate Assistant Commissioner and challenged the assessment made against him on the ground that since he had no income of his own, the provisions of Section 64(1)(iii) will not apply in his case. But, he could not succeed at that stage. Therefore, he preferred a second appeal to the Tribunal. The Tribunal set aside the assessment order by taking the view that since the income-tax authorities have not held anywhere that the minors were benamidars of the assessee, the income of the minors could not have been assessed in his hands.

(3.) IN view of the above discussions, the question referred to us is answered in the negative, i.e., in favour of the Department. Anyhow, there will be no order as to costs.