Sunday, December 4, 2011



Inclusion of income of minor child from firm – Parent need not be a partner.
CIT Vs Dhanushkodi (Mad) 252 ITR 794

Clubbing of income of minor with that of father eventhough source of investment is not from father.
Chandrakala Bai Naila Vs CIT (MP) 178 ITR 341
CIT Vs Bajrangal (AP) 176 ITR 334
CIT Vs Chinabai M. Modi (Guj) 69 ITR 76
CIT Vs K.R. Natarajan (Mad) 236 ITR 402
P. Alwarsamy Vs CIT ( Mad ) 98 Taxman 19
CIT Vs S.J.S. Selvalakshmi Ammal (Mad) 240 ITR 934
CIT Vs P. Murugesan (Mad) 245 ITR 301
CIT Vs Pelleti Sridevamma ( SC ) 216 ITR 826

Inclusion of income of minor child from firm – father need not have any income.
CIT Vs Krishna Iyer (Decd) (Mad) 249 ITR 498

Property given by an oral gift by a Mohammedan to his wife out of natural love and affection is not for adequate consideration or under an agreement to live apart. Hence Sec. 64 applicable – Clubbing.
N.P. Syed Sadique JT 1998(8) SC 32 (105 Taxman (Mag) 81)

Assets transferred to wife – Capital Gains derived by wife by selling the assets – to be clubbed in the hands of assessee, husband.
Sevantilal Maneklal Sheth Vs CIT (SC) 68 ITR 503

Transfer of house property by assessee to his wife – 64(1)(iv) attracts – clubbing .
Syed Sadique & Ors Vs CIT (SC) 239 ITR 263

Income of step-child can be clubbed u/s.64(1)(iii).
CIT Vs Abdul Rahim Khan M. Pathan (Guj) 243 ITR 409

Cash transferred to wife – amount invested in firm – income from firm was includible in the Total Income of husband
Kaushalyabai Vs CIT (MP) 238 ITR 1008
H.P. Dandiwala Vs CIT (All) 231 ITR 281

Clubbing of income of spouse / minor child – No separate deduction u/s.80L for clubbed income.
ITO Vs Yogi H. Aggarwal (ITAT, Mum) 96 ITD 288

Assessee routed certain sales through a sister concern to make that concern earn profit – Actual delivery made by assessee directly to ultimate purchaser – Sister concern situated in the same premises, has no godown, incurred no freight and transportation charges – colourable device – Profit shown to have been earned by sister concern assessed in the hands of assessee.
Bansal Ispat (Lucknow)(P) Ltd. Vs ACIT (ITAT, All) 61 ITD 246

Assessee managing affairs of firm – Benami of assessee – Income to be included in the hands of assessee
CIT Vs G.M. Dharia ( Kar ) 243 ITR 104
Assessing giving gifts to wife – wife invested this amount in firm A – Later on, wife withdrew the amount from firm A and invested it in firm B in which assessee is a partner – Clubbed in the hands of 'a' u/s.64(1)
CIT Vs Harkishdas (MP) 228 ITR 289

Assessee purchased lease rights of a firm for 5 years – sold within 5 months to minor grand daughter – Took back on lease – assessee did not work – sham transaction – income of minor grand daughter clubbed with assessee as benami.
G. Krishnammal Vs DCIT (ITAT, Mad) 66 ITD 83

Cross-gifts to be included for clubbing purposes.
CIT Vs C.M. Kothari (SC) 49 ITR 107
Om Dutt Vs CIT (P&H) 277 ITR 63

Finding that firm's business was actually being conducted by another firm – Firm was not genuine
Oswal Trading Co. Vs CIT (MP) 233 ITR 385

Firm carrying on money lending business – Three ladies closely related to partners of the firm forming another firm for carrying on similar business – Finding that business was actually carried on by original firm – Partnership formed by ladies not genuine – Clubbing of income of both firm.
Sri Krishna Finance Corporation Vs CIT (AP) 169 ITR 611

Spouse must have technical or professional qualification and income must be solely attributable to the application of his / her technical or professional knowledge and experience – Otherwise, income to be clubbed
J.M. Mokashi Vs CIT (Bom) 207 ITR 252

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