COMMISSIONER OF INCOME TAX Vs. RANI DULEIYA

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Bombay, has referred the following question for our decision :

(2.) THE facts of the case, in brief, are that Smt. Rani Duleiya is a partner of the firm, Messrs. Agarwal & Co., which was registered under the Income-tax Act. Her three minor sons are also admitted to the benefits of the partnership. For the assessment year 1962-63, the assessee and her sons were separately assessed in respect of their shares from the firm. In the return filed by her, she had not included in her total income the shares of profit of her minor sons from the firm. She had, however, pointed out in Part III(c) of the return that the particulars were "as per firm's return". Part III(c) of the form of return requires that the assessee should show the relationship with other partners which she had tailed to mention. After the assessment was over, the Income-tax Officer reopened the assessment and called upon the assessee to file a fresh return. Again the return was filed in the same manner, that is to say, in her own income she bad not included the income of her minor sons from the partnership nor did she mention her relationship with the partners. THE Income-tax Officer, however, on this occasion included the share income of her sons also in her income as is required under Section 64 of the Income-tax Act, 1961, and reassessed her accordingly. THE Income-tax Officer also started proceeding under Section 271(1)(c) of the Act which proceeding was disposed of by the Inspecting Assistant Commissioner of Income-tax. A penalty of Rs. 9,000 was imposed on the assessee. This order in penalty proceeding was challenged before the Income-tax Appellate Tribunal. THE Tribunal held in favour of the assessee and hence the present reference has been made at the instance of the department.

(3.) SECTION 64 in terms places the responsibility of including the income of a minor in that of the individual assessee on the Income-tax Officer. There is nothing to indicate in this section that the assessee is under any obligation to show that income in the return filed by him. SECTION 139 of the Act provides: