LOKNATH GOENKA Vs. COMMISSIONER OF INCOME TAX, PATNA

JUDGEMENT

(1.) These two cases arise from a reference made by the Income Tax Tribunal, Patna Bench, Patna under Section 256(i) of the Income Tax Act, 1961 (hereinafter referred as as 'the Act').

(2.) The point for consideration in the reference is whether the Appellate Tribunal was correct in law in holding that the share income of minor sons of the assessees, including the share in interest on capital credited to the minor sons out of the partnership firm was to be computed in the hands of their father under Section 64(1)(iii) in the Assessment year 1976-77. The said provision was introduced in the Income Tax Act by the Taxation Law (Amendment) Act 1975 with effect from 1.4.1976, whereas the accounting year of the assessee(s) in the instant case(s) came to an end on 10.8.1975 and on 31.12.1975 in Taxation Case No. 126 of 1983 and Taxation Case No. 28 of 1986 respectively.

(3.) The authorities were of the opinion that the question was answered by a Division Bench decision rendered in the case of Badri Prasad & ors. vs. Commissioner of Income Tax, 1990 185 ITR 307, which concluded the issue in the following terms:-