TMI Blog2005 (2) TMI 760X X X X Extracts X X X X X X X X Extracts X X X X ..... sment was framed under section 143(3) read with section 147 of the Act. According to the Assessing Officer, the assessment of the firm was completed on a total income of Rs. 6,21,090 for the assessment year 1991-92. A notice under section 148, was issued by the ITO, with a prior approval of Jt. Commissioner of Income-tax, Hubli. The reason for issuance of notice under section 148 as recorded in the file was produced before the Tribunal. According to the Assessing Officer, under section 64(1)( i ) of the Income-tax Act, the share income of wife and minor daughters have to be clubbed in the hands of the assessee. Hence, the Assessing Officer has reason to believe that income chargeable to tax had escaped assessment. Accordingly, notice under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ason in issuance of notice under section 148 of the Act. The wife of the assessee has no special qualification and it cannot be said that she was earning her own independent income. Similarly, the minor daughter s income was rightly clubbed in the hands of the assessee. 5. Having heard both the sides, I find that for the assessment year 1991-92, the assessee did not file any return of income. However, the firm was assessed at a total income of Rs. 6,21,090. In the present case admittedly, the assessee, his wife and two minor daughters are partners of the firm having equal shares at the rate of 25 per cent each. The Assessing Officer has mentioned in his order that in the instant case both the assessee and his wife have no income, except ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome is once included in the total income of either spouse or parent, any such income arising in any succeeding year shall not be included in the total income of the other spouse or parent unless the Assessing Officer is satisfied, after giving that spouse or parent an opportunity of being heard, that is necessary so to do." 7. On perusal of the two provisions, I find force in the submission made by the assessee. Section 64(1)( i ) does not empower the Assessing Officer to include the income of the minor son or daughters in the hands of parents. Section 64(1)( i ) prescribed for clubbing the income of husband or wife in the hands of other spouse. Under the Explanation (1) such income is to be clubbed in the hands of the spouse whose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the circumstances above, I am of the view that issuance of notice under section 148 was not proper in the facts of the case. Accordingly, the consequential addition in the hands of the assessee cannot be sustained. 8. For the assessment year 1992-93 assessment under section 144 was framed by the Assessing Officer by clubbing the income of the wife in the hands of the assessee. Admittedly in that year also both the assessee and his wife was having equal amount of income. Thereafter by passing an order under section 154, the Assessing Officer further clubbed the income of the minor daughters in the hands of the assessee. The CIT(A) upheld the finding recorded by the Assessing Officer. This issue was discussed at length in the earlier pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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