1987 (3) TMI 40

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..... s a reference under section 256(1) of the Income-tax Act at the instance of the assessee and the following question is referred for the opinion of this court . "Whether, on the facts and in the circumstances of the case, the interest income of Rs. 3,418 accrued on the capital account of the minor, Sri B. Srinivasa Rao, is includible in the hands of the assessee under section 64(1) of the Income-t .....

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..... come was confirmed in appeal and also on further appeal by the Tribunal. According to learned counsel for the assessee, after the amendment of section 64(1) in 1975 (w.e.f. 1-4-1976), the action of the authorities in following the decisions under the earlier provisions is not correct. He has sought to distinguish the decision in Akula Venkatasubbaiah v. CIT [1963] 47 ITR 458 (AP). Further, as the .....

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..... re is no evidence to prove that the amount contributed by the minor to the firm was by way of loan or deposit. It also drew an inference from the circumstances that only because of such contribution of capital, the minor was admitted to the benefits of the partnership and the income arose because of his being admitted to the benefits of the partnership. The findings cannot be said to be unjustifie .....

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