P. Alwarsamy vs Commissioner of Income Tax

At the instance of the assessee, the Tribunal referred the following question u/s 256(1) of the income tax Act, 1961 for the assessment year

1976-77 for the opinion of this Court :

Whether, on the facts and circumstances of the case, the Appellate Tribunal is right in applying the provisions of section 64(1)(iii) of the Act and

including the income of the minor children in the assessment for 1976-77 though the assessee had no income or his own in his individual capacity

during the year ?

In view of the decision of the Madras High Court in CIT v. P. Alwarsamy [1995] 211 ITR 353, in the case of the same assessee, wherein it was

held that the income arising to the minor sons of the assessee as a result of their admission to the benefits of partnership was liable to be included in

his total income u/s 64(1)(iii) of the Act, notwithstanding that the assessee had no income of his own from any source whatsoever, we answer the

question referred to us in the affirmative and against the assessee. No costs.