322 of 1955 and respondent in C.A. No.
71 of 1956 and appeal from the judgment and order dated August 26, 1952, of the Punjab High Court in Civil Reference No.
The facts leading up to these appeals may be shortly stated as under.
BHAGWATI J. These two appeals with certificates under Section 66A 2 of the Indian Income Tax Act hereinafter referred to as the Act raise a companymon question of law and will be governed by this companymon judgment.
At the instance of the Commissioner of Income tax, Delhi, the Tribunal referred to the High Court of Punjab at Simla the question of law arising out of its order under s. 66 1 of the Act together with a statement of case.
K. Daphtary, Solicitor General of India, G. N. Joshi and R. H. Dhebar, for the appellant in C.A. No.
Appeal from the judgment and order dated April 13, 1954, of the Nagpur High Court in Miscellaneous Civil Case No.
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 the High Court Whether on a true companystruction of the provisions of section 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.
J. Kolah, J. B. Dadachanji, S. N. Andley and Rameshwar Nath, for the respondent in C.A. No.
The High Court heard the reference and came to the companyclusion that it was number the intention of the Legislature to include in the income of the mother, the income of her minor children arising from the benefits of partnership of a firm in which the mother is a partner and accordingly answered the referred question in the negative.
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.
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 companystituted a joint and undivided Hindu family.
May 17.
322 and 25 of 1955.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
One Ishwardas Sahni who died on November 7, 1946, was a partner in the firm of Messrs. Ishwardas Sahni Bros. The firms accounting year ended on March 31, 1947.
25 of 1955.
322 of 1955 before us.
The Income tax authorities included the minor sons shares in the reconstituted firms profits in companyputing the income of the assessee on the ground that individual in s. 16 3 a ii of the Act meant an individual person of either sex.
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.
was delivered by Bhagwati J. S.K. Das J. delivered a separate judgment.
The said Ishwardas Sahni left him surviving his widow Damayanti the assessee and two minor sons.
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 minor sons.
11 of 1952.
The High Court, however, granted the necessary certificate under s. 66A 2 of the Act to the Commissioner of Income tax, Madhya Pradesh and Bhopal, and hence Civil Appeal No.
The assessee became a partner in the said firm which also admitted her two minor sons to the benefits of the partnership.
The genuineness of the partnership was number disputed.
The three minor sons of the assessee were admitted to the benefits of the partnership.
25 of 1955.
S. Pathak and M. L. Kapur, for the appellant in C.A. No.
322 of 1955.
The Income tax Appellate Tribunal held that the word individual must be taken as referring only to a male assessee wherever that occurred in s. 16 3 and directed the deletion from the assessees income of the shares of her minor sons in the profits of the firm.
The Judgment of Bhagwati and J.L. Kapur JJ.
The referred question was Whether the word individual in Section 16 3 a ii of the Income Tax Act, 1922, includes also a female and whether the shares of the two minor sons of Shrimati Damayanti Sahni in the profits of the re constituted firm of Messrs. Ishwardas Sahni and Brothers should be included in the income of Shrimati Damayanti Sahni in assessing her income, profits and gains.
