Commissioner of Income Tax vs Hukam Chand

In this reference made by the Income Tax Appellate Tribunal, Jaipur Bench, Jaipur (hereinafter referred to as "the Tribunal"), the following question has been referred for the consideration of this court :

"Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in holding that the share income of Rs. 3,950 earned in the name of Sri Ajay Kumar, minor son of the assessee, cannot be included in the hands of the assessee u/s 64?"

Shri Singhal, learned counsel for the Revenue, has invited our attention to the order of this court dated May 13, 1988 in D. B. Income Tax Reference No. 47 of 1982 Commissioner of Income Tax Vs. Bal Mukund, We find that in that case also the question which was referred for the consideration of this court was on the same lines, with regard to the interpretation of Section 64 of the Income Tax Act and this court held (at page 43) that Section 64 of the Act applies where the minor child is of an individual who is the assessee as an individual and not where the ass''esee is a Hindu undivided family. The present case is fully covered by the aforesaid decision of this court and in accordance with the said decision, the reference is answered in the affirmative, i.e., against the Revenue and in favour of the assessee, by holding that the Tribunal''s view is justified. No order as to costs.