Law:

Section:

Section 64, read with section 182, of the Income-tax Act, 1961 - Transfer of assets - For benefit of spouse, etc. - Assessee's minor sons, who at relevant time, were residing with assessee outside India, had been admitted to benefits of partnership in a firm - ITO assessed share income of minors derived from firm in hands of assessee under section 64(1)(iii) - Appeal against same was allowed by AAC - On revenue's appeal, Tribunal concurred with view taken by AAC holding that share income of assessee's minor children was assessable in firm under section 182(3) and that it could not be included in hands of non-resident assessee in his individual assessment under section 64(1)(iii) - Whether Tribunal was justified - Held, no FACTS The assessee's minor sons had been admitted to the benefits of partnership in a firm and at the relevant time the assessee and his two minor sons were residing outside India and treated as 'non-residents'. The Income-tax Officer assessed the share income of the minors derived from the firm in the hands of the assessee under section 64(1)(iii). The assessee preferred an appeal challenging the correctness of the order passed by the ITO which was allowed by the AAC. On appeal by the revenue, the Tribunal held that the share income of the assessee's minor children was assessable in the firm under section 182(3) and that it could not be included in the hands of the non-resident assessee in his individual assessment under section 64(1)(iii). On reference : HELD A general statute or a general provision applies to all persons within the jurisdiction and scope as distinguished from a special one, which in its operation is confined to a particular locality or a particular group of persons or class of cases. A law, which is essentially general in nature, may also contain special provisions on certain matters and in respect of those matters, it would be classified as a special law.[Para 11] Section 64 specifically provides that in computing the total income of any individual, there shall be included all such income as arises directly or indirectly and mandates such income of the individual to include the income of the spouse, minor child, etc., even…

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