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Issues:
1. Validity of the Commissioner's order under section 263 regarding the partition in a Hindu undivided family. 2. Legality of the partial partition between two groups under Hindu law. Analysis: 1. The case involved a dispute over the validity of the Commissioner's order under section 263 of the Income-tax Act, 1961, regarding a partition in a Hindu undivided family. The Assessing Officer had accepted the partition, but the Commissioner set aside this decision, stating that the members of the family should have taken individual shares instead of being grouped. The Tribunal overturned the Commissioner's order on the grounds that notice was not given to all family members before the decision and that the partition was valid. The Tribunal's decision was supported by a previous judgment regarding a similar partition in a different family, which was deemed valid. 2. The second issue revolved around the legality of a partial partition between two groups within a Hindu undivided family. The court examined the definition of "partial partition" under section 171 of the Income-tax Act, which allows for partitions that are partial concerning either the family members or the family properties. In this case, the partition involved dividing the family's interest in a firm between two groups within the family. The court held that this arrangement constituted a valid partial partition under the law, as it fulfilled the requirements of section 171. The court relied on previous judgments and legal interpretations to support its decision, emphasizing that the partition did not need to involve all family assets or members to be considered valid. In conclusion, the court ruled in favor of the assessee, upholding the validity of the partial partition between the two groups within the Hindu undivided family. As a result, the first question regarding the Commissioner's order became redundant, and the court declined to answer it. The judgment provided a detailed analysis of the legal principles involved, referencing relevant case law and statutory provisions to support the decision.
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