TMI Blog1959 (12) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... arasa Reddy and Co., Gudur, along with his two major sons and a minor son Ananta Padmanabha Reddi, who has been admitted to the benefits of the partnership. In the assessment year, 1952-53, the petitioner's income was computed at ₹ 82,392/- and therein was included the income pertaining to the share of his minor son, according to the provisions of Section 16(3)(a)(ii) of the Income Tax Act. This assessment was made on 11-3-1953, and admittedly the petitioner preferred no appeal against the said assessment order. On 30-12-1954, the assessment was revised under Section 35 after obtaining the concurrence of the assessee by adopting the correct share of income from the various firms in which he was a partner. The petitioner preferr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f six months might be considered reasonable, though, in extraordinary circumstances, the High Court might, in its discretion, excuse the delay. It was there pointed out that Otherwise, while periods of limitation are fixed for every form of remedy available to a party, there will not be any time limit for the exercise of the extraordinary jurisdiction of this Court. The exercise of power under Article 226 by a Court irrespective of any time lag will introduce complications and unsettle rights finally decided by authorities empowered to do so . The petitioner has not offered any reasonable explanation for excusing the inordinate delay of 4-1/2 years from the date of the making of the order, and this petition should therefore fail on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... examined afresh and that in any view, the validity of the provision with reference to its alleged conflict with Section 40 of the Income Tax Act must be considered. In the Supreme Court decision their Lordships had to determine whether the word 'individual' occurring in Section 16(3)(a)(ii) of the Act includes also a female and the income of their minor sons derived from A partnership of the benefits of which they have been admitted is liable to be included in the income of the mother who is a member of that partnership . Section 16(3) of the Act provides: ''In computing the total income of any individual for the purpose of assessment, there shall be included: (A) so much of the income of a wife or minor child of suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mission is, as a rule, merely nominal, hut being supported by entries in the firm's book the Income Tax Officer is rarely in a position to prove that the alleged participation in the benefits of partnership is unreal. There is the genuine case which is intended to be relieved by the Income Tax (Second Amendment) Act, 19133, and the question arises as to the nature and extent of the restriction, which will exclude from relief only the case in which a father is attempting to obtain an allowance for what is, in effect, merely the cost of maintenance of his children. We suggest that the income of a minor should be deemed to be the income of the father (1) if it arises from the benefits of the partnership in a business in which the fathe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urposes of legislation. In order, however, to pass the test of permissible classification two conditions must be fulfilled, namely, (i) that the classification must be founded on an intelligible differentia which distinguishes persons or things that are grouped together from others left out of the group and (ii) that that differentia must have a rational relation to the object sought 'to be achieved by the statute in question. The classification may be founded on different bosses , namely, geographical or according to objects or occupations or the like. What is necessary is that there must be a nexus between the basis of classification and the object of the Act under consideration . 12. We are of opinion that the legislation in the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tence of Sections 40 and 16(3)(a)(ii) is contrary to the scheme of the Act, Section 40 reads:- (1) Where the guardian or trustee of any person being a minor, lunatic or idiot (all of which persons are hereinafter in this sub-section included in the term 'beneficiary') is entitled to receive on behalf of such beneficiary or is in receipt on behalf of such beneficiary of any income, profits or gains chargeable under this Act, the tax shall be levied upon and recoverable from such guardian or trustee, as the case may be, in like manner and to the same amount as it would be leviable upon and recoverable from any such beneficiary if of full age or sound mind, and in direct receipt of such income, profits or gains, and all the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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