TMI Blog2002 (1) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... wed in the case of the assessee. (2) The Ld. Commissioner (Appeals) failed to appreciate that section 64(1A) clearly states that all income arising or accruing to the minor child is to be included in the total income of the assessee; and section 80B states that gross total income means total income, computed in accordance with the provisions of the Act, without making any deduction under chapter VIA of the Income-tax Act." 2. Facts of the case, to be stated succinctly, are thus. The assessee, an individual, derived income from salary, house property and other sources. He had three minor children, all of whom had income from interest and dividends. In view of provisions of section 64(1A) of the Income-tax Act, 1961, the income arising or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IA of the Act, which includes, inter alia, section 80L. It was contended that deduction under section 80L is to be allowed only once in the case of assessee himself and not in respect of income of each minor included in assessee's total income. 5. The ld. counsel for the assessee while reiterating the arguments advanced before the ld. Commissioner (Appeals) contended that from the provisions of section 64(1A) it was clear that what was to be clubbed was "income" and not the "gross total income" of the minors before allowing deductions under Chapter VIA. It was also submitted that section 64(1A) mandates clubbing of income and not the assessee (persons) and in this connection support was drawn from the view expressed in the Economic Times, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that we have also come across another opinion expressed in favour of the assessee, which is reported in N.A. 149 CTR 19 (Queries/Opinions/News). In his reply, the ld. Author has firstly referred to the Madras High Court decision in the case of CITv. P.N. Ramnaswamy [1984] 146 ITR 627 rendered in the context of provisions of section 64(1)(iii) of the Act, rejecting the plea of the assessee that before inclusion of dividend income of his wife to his total income, deduction under section 80L should be allowed. The ld. Author has then felt that the view expressed by the Madras High Court did not appear to be correct. In his own turn, he has referred to the decision of the Karnataka High Court in the case of CITv. S.K. Nayak [1984] 145 ITR 791 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income from salaries. The deductions admissible against "income from other sources" (under which the interest income of minors in this case is assessable in assessee's hand, in view of the apex court decision in CITv. J.H. Gotla [1985] 156 ITR 323 are specified in section 57 of the Act. Section 80L does not form part of these deductions. Moreover, while deduction under section 16(i) is granted in the computation of income from salary itself, deduction under section 80L is to be granted in the computation of the "total income" of the assessee. Thus, both cannot be equated. Therefore, in our considered opinion, the decision rendered by the Karnataka High Court in the case of S.K. Nayak does not in any way support the view expressed by the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicable to the year under consideration, are extracted below: "80L (1) Where the gross total income of an assessee, being-- (a) (b) (c) includes any income by way of-- (i) to (x) there shall, in accordance and subject to provisions of this section, be allowed, in computing the total income of the assessee, a deduction as specified hereunder, namely:-- (1) in a case where the amount of such income does not exceed in the aggregate seven thousand rupees, the whole of such amount; and (2) in any other case, seven thousand rupees." From the above provisions, it is evident that deduction under section 80L is to be allowed in computing the total income of the assessee. The question for consideration is who is the assessee, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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