Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (7) TMI 559 - HC - Income TaxConstitutional validity of Section 64(1A) - Minor's income clubbed with mother's income - Held that:- When provisions are made to block loopholes for any possible tax avoidance, the Legislature is competent to have a wider field of discretion not only for the substantive provision but for procedural provisions as well - Section 64(1A) is a provision for computation of income of an individual whose minor child is having income and that by itself constitutes a different class. Instead of providing a separate slab, it is provided that the income of such minor would be included in the income of the individual. There is no lack of competence in the Legislature for providing such a legislation. The object sought to be achieved is to tax the income and simply because by including the income of the minor in the hand of either of the parents, he or she has been subjected to a higher tax burden, it cannot be considered to be unconstitutional - Appellant could not point out any illegality to the provisions of clubbing the income of the minor child, earned by him in his own right, in the income of the parents - Following decision of K. V. Kuppa Raju And Others Versus Government Of India And Others [1999 (9) TMI 47 - KARNATAKA High Court] - Decided against Assessee. Natural guardian - Whether income of minor should only be included in income of father to achieve object of Section 6 of Hindu Minority and Guardianship Act - Held that:- The expression natural guardian has been defined in Section 4(c) as noticed above to mean any of the guardians as mentioned in section 6 of the Act of 1956. This section refers to three classes of guardians viz., father, mother and in the case of a married girl the husband. The father and mother therefore, are natural guardians in terms of the provisions of Section 6 read with Section 4(c) - Under the Hindu Law both mother and father are the natural guardians of the minor sons or daughters. It cannot be said that the mother is not the natural guardian during the lifetime of the father or until he is disqualified from being the natural guardian - Following decision of Ms. Githa Hariharan & Anr. Versus Reserve Bank of India & Anr. [1999 (2) TMI 64 - SUPREME Court] - Decided against Assessee. When both mother and father are natural guardians, then adding the income of the minor child in the income of the parent, whose income is greater, cannot be said to be arbitrary, artificial or evasive of the object sought to be achieved
|