TMI Blog1985 (9) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 154 of the Act ?" The assessment year under reference is 1968-69, the previous year being Samvat year 2023. The assessee who is a minor was admitted to the benefits of a partnership firm in the name and style of Ojas Corporation. Besides the share income from the said firm, the assessee derived income from interest, dividends and house property. After the assessment for the assessment year 1968-69 was completed, it came to the notice of the Income-tax Officer that the annuity deposit payment by the assessee has been worked out at the lower figure and additional surcharge had not been charged. The Income-tax Officer, therefore, issued a notice calling upon the assessee to show cause as to why the aforesaid mistake should not be rect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of "earned income" given in the Finance (No. 2) Act, 1967. Section 2(7)(c) of the said Act defines "earned income" as under : "(c) 'earned income' means any income of an assessee who is an individual, or a Hindu undivided family, or an unregistered firm (not being an unregistered firm assessed under clause (b) of section 183 of the Income-tax Act) or an association of persons or body of individuals, whether incorporated or not, not being (A) a company, or (B) a local authority, or (C) a registered firm, or (D) an unregistered firm assessed under clause (b) of the said section 183 (i) which is chargeable under the head 'salaries' ; or (ii) which is chargeable under the head 'Profits and gains of business or profession' where th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefits of the partnership was the recipient of income from the firm without being actively engaged in the conduct of the business of the firm and, therefore, the income from the firm received by the assessee is "unearned income". Similarly, the income from other sources, namely, interest, dividends and property, is also "unearned income" inasmuch as the assessee had derived the same without any personal exertion. We are, therefore, of the opinion that this was a mistake apparent on the record and the Income-tax Officer was fully justified in passing the order for rectification directing charging additional surcharge on unearned income of the assessee. It may be stated that the Tribunal has relied on Nandlal Mangaram Pamnani v. G. L Laks ..... X X X X Extracts X X X X X X X X Extracts X X X X
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