Law:

Section:

section 35 of the indian income-tax act, 1922 [corresponding to section 155 of the income-tax act, 1961]-rectification of mistake-minor sons admitted to benefits of partnership in firms in which assessee was a partner-shares of losses of minors in firms were allocated. to assessee and were set off with her own income-whether assessment could be rectified by withdrawing set off of minors' shares of losses-held that, as the points involved were debatable, there was no mistake apparent on the face of the record and hence assessment could not be rectified Facts The assessee was a partner in three firms H, R and K in which her minor sons were admitted to the benefits of partnerships. In the partnership deeds of the firms R and K, it was provided that the minors would not be personally liable for any obligation of the firms but their respective share only would be liable and that during the minority, their respective share of profit would be accumulated so as to be available to meet their respective share of losses, if any and in the event of such accumulated profit being insufficient to absorb the share of losses, the deficit should be exclusively borne by the assessee. The assessment for 1961-62 was computed on 25-8-1961 taking the share income from the firm H at Rs. 54,350 and nil from the firms R and K, as shown by the assessee, subject to rectification on completion of the firms' assessment. On completion of the assessment of the firm H, the assessment of the assessee was rectified on 13-7-1965. On completion of the assessments of the other two firms R and K, the assessment of the assessee was again rectified on 3-2-1967. In this rectified-assessment, the assessee's own share of loss of Rs. 9,434 as also the shares of three minor sons in these two firms amounting to Rs. 28,302 were set off against her income from other sources. Subsequently, the ITO issued a show-cause notice for rectification to withdraw the set off of the minors' shares of losses of Rs. 28,302, allowed in earlier rectification order, and passed a rectification order on 10-9-1970 rejecting assessee's objection that as per t he partnership deed, the assessee was liable for the minors' shares of…

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