TMI Blog2021 (1) TMI 744X X X X Extracts X X X X X X X X Extracts X X X X ..... t the amendment making such income taxable in the hands of father, came into effect with effect from 01.04.1976, the period prior to the accounting year ending on 31st December, 1975. - Tax Cases No.126 of 1982 - - - Dated:- 6-11-2020 - Honourable The Chief Justice And Honourable Mr. Justice S. Kumar For the Petitioner/s : Mr. D. V. Pathy, Advocate For the Respondent/s : Mr. Rishi Raj Sinha, Advocate, Ms. Shilpi Keshri, Advocate ORAL JUDGMENT (PER: HONOURABLE THE CHIEF JUSTICE) The Income Tax Appellate Tribunal, Patna Bench, Patna has made the instant Reference under Section 256 (1) of the Income Tax Act,1961 on the following substantial question of law:- Whether, on the facts and in the circumstances of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court in an appeal against the judgment of the High Court given in a reference under Section 66 of the Act, are not constituted courts of appeal against the order of the Tribunal. These courts only exercise advisory jurisdiction in such references. [ Rameshwar Prasad Bagla v. CIT, (1973) 3 SCC 575 ] In Premier Breweries Ltd. v. CIT, (2015) 11 SCC 695 : 2015 SCC OnLine SC 196 at page 698, the Court observed: 9. The second issue raised is the jurisdiction of the High Court to set aside the order of the Tribunal in the exercise of its reference jurisdiction. The point is no longer res integra having been settled in C.P. Sarathy Mudaliar v. CIT [C.P. Sarathy Mudaliar v. CIT, (1966) 62 ITR 576 (SC)] wherein this Court has taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , namely, Shri Alok and Shri Atul who were partners in the firm M/s. Vijay Kumar Pradeep Kumar relating to their share income from this firm. The share income of the two minors sons of the assessee came to ₹ 38,944/- which was added in the total income of the assessee under section 64 of the said Act. Copy of the assessment order of the Income-tax Officer forms part of the statement of the case and is annexure A . 3. On appeal, the Appellate Assistant Commissioner agreed with the finding of the Income-tax Officer and dismissed the appeal. Copy of the order of the Appellate Assistant Commissioner forms part of the statement of the case and is annexure 'B'. 4. Being aggrieved by the order of the Appellate Assistant Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 2-1-75 which showed that the firm came into existence from 1-1- 75 and the accounting period of the firm was to end on 31st December of each year. The deed also showed in clause 4 that the capital required to run the firm was to be contributed by the parties and the minors and they were to get interest at 9% per annum on the capital. Copy of this partnership deed also forms part of the statement of the case and is annexure D . 9. The learned counsel for the assessee submitted that the accounting period during which the minors earned the share income and the interest ended on 31-12-75 and section 64(1) (iii) of the said Act was amended from 1-4-76 by Taxation Laws (Amendment) Act, 1975, which laid down that in computing total income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11. The learned counsel for the assessee also submitted before the Tribunal that the interest income earned by the minors should not be added in the income of the assessee as it does not arise due to admission of the minors to the benefits of the firm. The Tribunal for the detailed reasons mentioned in paras 9 to 11 came to a finding that the minors contributed the capital in the firm M/s Vijay kumar Pradeap kumar on 1-1-75 as they were required to contribute capital under clause 4 of the partnership deed. The Tribunal, therefore, held that the Income-tax Officer was justified in adding the share income of the minors including the interest to the extent of RS 38,944/- in the income of the assessee father under section 64(1)(iii) of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X
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