TMI Blog1997 (1) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... 76-77 for the opinion of this court : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the interest income of Rs. 4,334 in all, which accrued to the three minor children of the assessee, was not income which arose directly or indirectly to the minor children of the assessee from their admission to the benefits of partnership in the firms ? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sons of the assessee, namely, Padan Chand Jindal, was admitted to the benefits of the partnership firm, Impex Chemical Enterprises and another minor son, namely, Sunil Kumar Jindal, was admitted to the benefits of the partnership firms, namely, Golden Chemicals and Chemi Traders. The assessee was a partner in all these firms. The assessing authority found that the minors contributed capital in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all not be liable to invest any capital, that the money credited to the names of the partners shall be deemed to be the capital of the business and that the money credited in the names of the minors shall be deemed to be their deposits in the firm. According to the Income-tax Officer only where there is such a specific recital in the partnership deed can the ratio of the decision in Kaladhar Prasa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , this court held that interest accruing on deposits made by a minor was not includible in the total income of his parent under section 64(1)(iii) but interest accruing on capital investment was includible under that provision. In CIT v. Smt. Nirmala Devi [1987] 166 ITR 253, the Madhya Pradesh High Court held that interest accruing on capital investment was includible in the total income of a pare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ratan [1996] 217 ITR 692 and on the earlier occasions too that interest accruing on capital investment by the minors is includible in the total income of the assessee under section 64(1)(iii) of the Act. We, therefore, answer the aforementioned questions referred to this court in the negative that is, in favour of the Revenue and against the assessee. - - TaxTMI - TMITax - Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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