THE COMMISSIONER OF INCOME-TAX,MADRAS vs S. A. S. MARIMUTHU NADAR

The Supreme Court held that under Section 2(6AA) and Section 16(3)(a)(ii) of the Income-tax Act, 1922, a father is entitled to earned income relief on the share of profits of his minor sons included in his total income. The court clarified that the intention of Section 2(6AA) is to provide relief when a father's income includes that of his minor children, particularly when the father is actively engaged in the business while the minors are not. The court ruled in favor of the respondent, allowing the earned income relief on the minor sons' shares.