ANANDI DEVI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference under Section 256(1) of the Income-tax Act, 1961, at the instance of the assessee, is to answer the following question of law :

(2.) RELEVANT assessment years are 1976-77 to 1978-79. The assessee claimed exclusion of the interest income received by the minors, Rajkumar and Mangilal, admitted to the benefits of partnership in the computation of the total income. It was contended by the assessee that the minors were not under any obligation to contribute to the capital of the partnership and, therefore, the interest income was their deposit. The Income-tax Officer rejected the contention. Ultimately, the Tribunal also has rejected the assessee's contention. It has been held that the interest income in question received by the minors during these years from the partnership was rightly included while computing the total income of the assessee in accordance with Section 64(1)(iii) of the Income-tax Act, 1961. Hence, this reference at the instance of the assessee.