TMI Blog2000 (1) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee ?" The conspectus, and short spectrum of facts leading to the rise of this reference, may be articulated, at the outset, with a view to appreciate the merits of the reference and the challenge against it. New Bharat Hing Supply Company was a partnership firm running at Nadiad. Initially, there were two partners, who were real brothers. The names of the two partners, who were brothers were (1) Abdul Rahim Khan and (2) Abdul Karim Khan, and they were having equal share in the profit of the partnership firm. Karim, one of the two partners, expired on November 12. 1966, and in his place, his widow, Ayshabegam, was taken as partner and his two minor sons were admitted to the benefits of the partnership. Ayshabegam, widow of Karim, remarried with Rahim, who was the real brother of her former husband. She remarried with him on February 22, 1970. Smt. Ayshabegam, thereafter, retired from the partnership in the period relevant to the assessment year 1972-73, and the firm was reconstituted and the two minors were, again, admitted to the benefits of partnership. The names of the minors are Firoz and Navroz. As per the case of the Revenue, from the date of remarriage bet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amended definition of the expression "child" which included stepchild. The Tribunal also held that the assessee's case did not come in any way within the purview of section 64 and the minor sons were not the stepchildren of the assessee. It was, therefore, the view of the Tribunal in appeal. at the instance of the Revenue, that the minor share income from the partnership firm could not be included in the income of the assessee on the basis of the provisions of section 64(1)(iii) of the Income tax Act, Is it then stood. The Tribunal was approached by the assessee as well as by the Revenue for reference on a number of questions Which were proposed. However, finally, the Tribunal recording its reasons has made reference to this court of the aforesaid three questions only. The learned advocate for the assessee, Mr. Mehta, has, in his marathon submissions made before us placed reliance on a host of pronouncements and also on the views and the opinions on the personal law. The first contention propounded by Mr. Mehta for the assessee is that the provisions of the personal law in the case of a Mohammedan and marriage or remarriage which is a contractual matter would not, ipso fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 64, as it then stood, read as under : "64. (1) In computing the total income of any individual, there shall be included all such income as arises directly or indirectly... (iii) to a minor child of such individual from the admission of the minor to the benefits of partnership in a firm." It could, very well, be visualised from the aforesaid provision that in a case of minor child, who is admitted to the benefits of the partnership in a firm in which the assessee, at the relevant time, was also a partner, then in that case, the share income of the minor could be clubbed with the income of the assessee. At this stage, it would also be expedient and material to have a look at the definition of "child". In section 2(15A) which came to be inserted by the Taxation Laws (Amendment) Act, 1975, with effect from 1st April, 1976, the expression "child" is defined. It reads as under : "(15A) 'child', in relation to an individual, includes a step child and an adopted child of that individual." It is clearly evident from the plain perusal of the aforesaid section that stepchild is also included in the definition of child. The doubt which hitherto used to be whether the express ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of personal law of the assessee in fiscal liability for the assessment under the Income-tax Act. When the meaning is clear in a Central statute, it cannot be contended that the expression "stepchild" being alien to the personal law of a party must be given a precedence over the clear provisions in the Central tax statute. In our clear opinion, the status of the minors, the natural sons of Ayshabegam who came to be admitted to the benefit of the partnership firm in which the assessee was a partner upon remarriage with Ayshabegam after the death of her former husband Karim, the status of the assessee, obviously, therefore, would be of step father and the position and the status of the minors in that case would be of stepchildren. Obviously, therefore, the provisions of section 64[1)(iii) as it then stood, would stand attracted. Since the definition of "child" included stepchild with effect from April 1, 1976, the Tribunal is justified in holding that income of the minors who were the step children of the assessee from the assessment year 1976-77 in so far as clubbing with the income of the assessee is concerned is justified. Therefore, the first contention raised on behalf of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said firm, whereas two minors were admitted only to the benefits of the partnership firm. (4) The original partner and brother, Karim, expired and thereafter there was a reconstitution of the partnership firm. Again, during the assessment year 1972-73, Smt. Ayshabegam also retired from the partnership and the firm again came to be reconstituted and the two minors were again admitted to the benefits of the partnership. (5) The assessee, Rahim, married with his brother's widow, Ayshabegam, on February 22, 1970. (6) The definition of "child" came to be amended by the Taxation laws (Amendment) Act, 1975, with effect from April 1, 1976, whereby, " child" in relation to an individual included a stepchild and also an adopted child of that individual. In view of the aforesaid admitted aspects emerging from the record of the case they leave no manner of doubt in our mind that the assessee was obliged to disclose in his income-tax return the factum of his marriage with his brother's widow in spite of the legal position regarding relationship between the assessee and the minor sons of the widow by her former marriage as the minors became stepchildren of the assessee. Obviously, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chettiar v. CIT [1969] 74 ITR 183 (SC) ; (6) CIT v. Prem Bhai Parekh [1970] 77 ITR 27 (SC) ; (7) CIT v. Kochammu Amma (P. K.) (Smt.) [1980] 125 ITR 624 (SC) ; (8) CIT v. J. K. Hosiery Factory [1986] 159 ITR 85 (SC). We have extensively examined and considered threadbare, the propositions and the ratio propounded in the aforesaid decisions. Firstly, the entire case law will not be applicable to the facts of the present case, for the simple reason that for interpretation of the plain and unambiguous meaning of a Central tax statute, the principles and the provisions of personal law are not required to be considered. Secondly, the proposition of law which we highlight is, significantly, reinforced by a latest decision of the apex court in Syed Sadique v. CIT[1999] 239 ITR 263 (SC); [1998] 9 SCC 395. Obviously, therefore, meticulous articulation of the entire case law Would, now, not be warranted. Section 64 of the Income-tax Act, 1961, has a purpose, policy and philosophy behind it. The dominant design and desideratum and prominent purpose and policy behind incorporating the provisions of section 64 is to see that there is no tax evasion and to check manipulation, malpractic ..... 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