Judgment

HEGDE J. : This is an appeal by certificate, granted by the High Court of Calcutta under S. 66A (2) of the Indian Income-tax Act, 1922 (to be hereinafter referred to as the Act) against the decision of that Court in a reference under S. 66(1) of that Act.

2. The two questions of law referred to the High Court by the tribunal are: (1) Whether S. 16(3) of the Act was ultra vires the Central Legislature and (2) Whether on the facts and in the circumstances of the case, the income arising to the three minor sons of the assessee by the virtue of their admission to the benefits of the partnership of M/s. Ajitmal Kanhaiyalal was rightly included in the total income of the assessee under S. 16(3)(a)(iv) of the Act.

3. The assessee at whose instance those questions were referred did not press for an answer in respect of question No.1. Therefore that question was not dealt with by the High Court. Hence we need not go into that question. The High Court answered the second question in favour of the assessee.

4. The facts necessary for the purpose of deciding the point in dispute as set out in the statement of the case submitted by the tribunal are as follows:

5. The assessee Shri Ajitmal