Law:

Section:

Section 64 of the Income-tax Act, 1961 - Transfer of assets - For benefit of spouse, etc. - Assessment years 1962-63 to 1964-65 - Assessee was partner in a firm in which her deceased-husband had invested share capital - On death of deceased entire share capital was entered in books of firm as belonging to assessee - For several years thereafter income pertaining to said share inherited by assessee was assessed in her hands as her individual income - In 1956 share capital originally invested by deceased was divided into two equal parts and allotted to his two minor sons - Sons were also admitted to benefits of partnership and share income from firm pertaining to their specific share was assessed in hands of minor sons as individual - Tribunal held that there was partition between sons in 1956, that they were admitted to benefit of partnership as individuals and, hence, their income was liable to be added to that of assessee - Whether finding of Tribunal was based on relevant material and on that finding of fact there was no doubt that share income of minor sons was their individual income and, hence, it was liable to be added to income of assessee under section 64(2) - Held, yes FACTS One 'S' was a partner in a certain firm along with his wife 'K' and another person. He had a 6 annas shares while his wife, 'K' had a four annas share. He died on 13-3-1952 soon after, on 2-4-1952, the partners of the firm executed a fresh partnership deed under which 'K' became the owner of 10 annas share. Though 'S' had left a minor son, no share was granted to him by this partnership deed. It appeared that another son was born to 'K' some time after the death of 'S', but even after that event no share was given to the minor sons. From 1952 to 1956 the share income representing 10 annas share in relation to the firm was being assessed in the hands of 'K' as an individual. On 13-10-1956, the share capital of Rs. 45,172 originally belonging to 'S', but which till then had been entered in the name of 'S', was divided into two parts, each half being entered in the name of the two sons. On 11-8-1958, the two minors were admitted to the benefits of the partnership with 19 p. share…

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