Law:

Section:

Section 64 of the Income-tax Act, 1961 - Transfer of assets - For benefit of spouse, etc. - Assessee and his father 'S' were partners in a firm - 'S' made a will as per which, upon his death, his share in profit of firm was to be distributed among his wife and minor son of assessee in equal proportion - Said will further provided that credit balance in personal account of 'S' in firm's book was to be transferred to separate personal account of his wife and minor and if firm incurred loss in any year, minor's share of liability was to be met out of account transferred to his account by 'S' - On death of 'S', fresh partnership deed was executed in accordance with terms of said will of 'S' - Partnership deed was signed by mother of minor on his behalf as his natural guardian - Said deed indicated that in management of business of firm, minor was not given any part - Whether fact that partnership agreement was signed by guardian of minor, did not point to fact that minor was admitted to partnership and not merely to benefits of partnership - Held, yes - Whether partnership deed, read in conjunction with and in background of will of 'S' established that minor was admitted to benefit of partnership and was not made a full partner and, therefore, share income accruing to minor in firm was to be included in assessee's total income under section 64(ii) - Held, yes FACTS The assessee and his father 'S' were the partners of a firm. 'S' made a will according to which, after his death, his share in the profits of the firm should go to his wife and his minor grandson in equal shares. The said will also provided that the credit balance standing in his personal account in the books of the firm was to be transferred to the personal account of his wife and the minor grandson in equal amount and that the share of the minor's liability, to make good the trading loss, if any, accruing in any years would be reimbursed out of the amount transferred to the minor's account. On death of 'S', a fresh partnership deed was accordingly, executed among the assessee, the widow of 'S' and 'G', being the mother of the minor as his natural guardian. The deed provided that the share of 'S', in…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492