Commissioner of Income Tax vs V. Kumaraswami and Others

Ramanujam, J.—At the instance of the Revenue, the following question has been referred to this court for its opinion by the Income Tax

Appellate Tribunal :

Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the share income of the minors

could not be clubbed u/s 64(1)(ii) of the Income Tax Act, 1961, in the hands of the assessee herein for the assessment year 1975-76 ?

A similar question came up for consideration before this court in T.C. No. 1231 of 1977 and this court by judgment dated February 4, 1983.

Commissioner of Income Tax, Tamil Nadu-I Vs. S. Balasubramaniam, has held that the share income of the minors could be clubbed u/s 64(1)(ii)

of the Income Tax Act, 1961, in the hands of the assessee even if he represents the joint family in the firm and not in his individual capacity. The

said decision has been followed in the decision in T.C. Nos. 458 to 461 of 1978 and 530 of 1978, dated September 28, 1983, by another

Division Bench. Having regard to the said decision, the question in this case has to be answered in the negative and against the assessee.

Mr. K. Srinivasan, learned counsel for the assessee submits that this court in T.C. No. 1231 of 1977 Commissioner of Income Tax, Tamil

Nadu-I Vs. S. Balasubramaniam, has disagreed with the view taken by the Andhra Pradesh High Court in Commissioner of Income Tax Vs.

Sanka Sankaraiah, and a SLP filed by the Revenue against the said judgment of the Andhra Pradesh High Court has since been dismissed by the

Supreme Court. Therefore, the decision of the Andhra Pradesh High Court should be taken to have become final and conclusive and in so far as

this court''s judgment in Tax Case No. 1231 of 1977 Commissioner of Income Tax, Tamil Nadu-I Vs. S. Balasubramaniam, is in conflict with the

decision of the Andhra Pradesh High Court, it should be taken to require reconsideration. We are not in a position to agree with the said

contention of the learned counsel for the assessee, for the rejection of the SLP by the Supreme Court cannot be taken to be an expression of its

opinion on the question involved. The fact that the Supreme Court has refused to entertain a SLP against the judgment of the Andhra Pradesh High

Court cannot be taken to be disapproval of the judgment of this court referred to above. In this view of the matter, we are bound to follow the

decision in Tax Case No. 1231 of 1977 Commissioner of Income Tax, Tamil Nadu-I Vs. S. Balasubramaniam, and the decision in Tax Cases

Nos 458 to 461 and 530 of 1978. There will be no order as to costs.