T.V.K.NATARAJA CHANDRAN, T.N.C.RANGARAJAN
Third Wealth-tax Officer – Appellant
Versus
K. R. Beena (Minor) – Respondent
Advocates Appeared:
G. Natarajan,S. Swaminathan
ORDER
T. N. C. Rangarajan, Judicial Member - These appeals by the Revenue are directed against the orders of the AAC/CWT(Appeals) allowing the deduction of income-tax attributable to the income earned by the assessee who are minors and whose income has been added to the income of their parent under section 64 of the Income-tax Act 1961.
2. The assessees are minor children of Dr. K.R. Rajappan and Mrs. C.K. Nalini. They were admitted to the benefits of a partnership in a firm with effect from 16th August, 1976. Their income arising from the partnership firm for the period from 16th August, 1976 to 15th August, 1977 corresponding to the assessment year 1978-79 was included in the total income of their mother, C.K. Nalini by applying the provisions of section 64(1)(iii)of the Income-tax Act. In the current account of K.R. Beena, one of the assessees before us, with the firm Chandrika Products there were three debits for tax liability totalling Rs. 2, 19,815 as follows:
1976-77 Rs. 68,260
1977-78 Rs. 71,874
1978-79 Rs. 79,681
After adjusting the share of net profit of Rs. 59,877.67 the balance carried down was Rs. 1,59,937.33 which was taken into account in computing the net wealth as on
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