K. Jagannatha Shetty, Actg. C.J.—This is a reference under section 256(1) of the Income Tax Act, 1961. The question referred is as under :

"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in confirming the Appellate Assistant Commissioner's order who has held that share income of the minor children cannot be clubbed in the hands of the assessee under section 64 of the Income Tax Act as there was no income assessable in the status of an individual apart from the share income of the minors ?"

2. The assessee is an individual. He has two minor sons who were admitted to the benefits of the partnership in a firm called M/s. Channabasaveshwara Trading Co. He had no separate income of his own. He, therefore, did not include in his return the share income of the minor sons accrued to them from the firm. The Income Tax Officer thought that it was illegal to exclude the minor's income. He assessed the share income of the two minors in the hands of the assessee as required under section 64(1)(iii) of the Income Tax Act.

3. The assessee preferred an appeal challenging the order of assessment before the Appellate Assistant Commissi