Commissioner Of Income Tax,ludhiana, Etc. Etc. VS. Shri Om Prakash, Etc. Etc.

Extract

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Commissioner Of Income Tax,ludhiana, Etc. Etc. VS. Shri Om Prakash, Etc. Etc.

PETITIONER: COMMISSIONER OF INCOME TAX,LUDHIANA, ETC. ETC.

Vs.

RESPONDENT: SHRI OM PRAKASH, ETC. ETC.

DATE OF JUDGMENT16/11/1995

BENCH: JEEVAN REDDY, B.P. (J)

BENCH: JEEVAN REDDY, B.P. (J)

SEN, S.C. (J)

CITATION: 1996 AIR 593 1995 SCC Supl. (4) 737

JT 1995 (8) 245 1995 SCALE (6)487

ACT: JUDGMENT: J U D G M E N T

B.P. JEEVAN REDDY, J.

A conflict of opinion among the High Courts on the meaning and interpretation or clauses (i) and (ii) of sub- section (1) of Section 64 (as they stood prior to 1st April, 1976) of the Income Tax Act, 1961 falls for resolution in this batch of appeals. Prior to April 1, 1976 the said clauses along with the explanation read thus: (1). In computing the total income of any individual, there shall be included all such income as arises directly or indirectly -- (i) to the spouse of such individual from the membership of the spouse in a firm carrying on a business in which such individual is a partner;

(ii) to a minor child of such individual from the admission of the minor to the benefits of partnership in a firm in which such individual is a partner;

Explanation:- For the purpose of clause (i) the individual, in computing whose total income the income referred to in that clause is to be included, shall be the husband or wife whose total income (excluding the income referred to in that clause) is greater; and, for the purpose of clause (ii), where both the parents are members of the firm in which the minor child is a partner, the income of the minor ...

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