- (1.) These two appeals with certificates under S. 66A(2) of the Indian Income-Tax Act (hereinafter referred to as the Act) raise a common question of law and will be governed by this common judgment.
(2.) The facts leading up to these appeals may be shortly stated as under.
(3.) Prior to October 18, 1944, one Rai Bahadur Narsingdas Daga (since deceased), his wife Shrimati Sodradevi (the assessee), and his three major and three minor sons constituted a joint and undivided Hindu family. There was a severance of joint status between the erstwhile members of the said joint family on October 18,1944 and the joint family properties were accordingly partitioned. On such partition, the business of the Spinning and Weaving Mills and agency shop at Hinganghat fell to the share of the assessee and her three major and three manor sons. A partnership was entered into between the assessee and her three major sons for the purpose of carrying on the business of the Spinning and Weaving Mills and the agency firm at Hinganghat. The three minor sons of the assessee were admitted to the benefits of the partnership. The genuineness of the partnership was not disputed. The only question which arose for the consideration of the Tribunal was whether the income failing to the share of the three minor sons was liable to be included in the total income of the assessee. On a construction of S. 16 (3) (a) (ii) of the Act, the tribunal held that the income falling to the shares of the three minor sons of the assessee was liable to be included in her total income. The assessee thereupon applied to the Tribunal for a reference to the High Court of Judicature at Nagpur of the question of law arising out of its order under S. 66 (1) of the Act and the Tribunal submitted a statement of case referring the following question of law for the determination of High Court: "Whether on a true construction of the provisions of S.16 (3) (a) (ii) of the Indian Income-tax Act 1922, the income of the three minor sons of the assessee is liable to be included in her total income.";