INCOME OF MINOR ::

Last updated: 13 October 2007

Court :
HC

Brief :
Held by the Hon`ble Court that, the interest accrued or paid on accumulated profits cannot be said to be a "benefit of partnership" and section 64(1)(iii) permits adding or clubbing to the income of the assessee only the income of a minor child of the assessee which arise from the "benefit of partnership". Therefore interest income on accumulated profits of minor who is partner in a firm, will not include in the total income of parent.

Citation :
Smt. Nisha Rani Agarwal Vs. C.I.T.

Section 64(1)(iii) Smt. Nisha Rani Agarwal Vs. C.I.T. 05/01/2007 [2007] 294 ITR 46 (All) Case Fact: Whether, interest income on accumulated profits of minor who is partner in a firm, will include in the total income of parent? Decision: Held by the Hon`ble Court that, the interest accrued or paid on accumulated profits cannot be said to be a "benefit of partnership" and section 64(1)(iii) permits adding or clubbing to the income of the assessee only the income of a minor child of the assessee which arise from the "benefit of partnership". Therefore interest income on accumulated profits of minor who is partner in a firm, will not include in the total income of parent.