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Issues:
1. Whether income derived from intestate self-acquired property received from the assessee's father is taxable in the status of the Hindu undivided family? Analysis: The case involved a reference under section 256(1) of the Income-tax Act, 1961, where the Income-tax Appellate Tribunal referred a question of law to the High Court regarding the taxation status of income derived from self-acquired property received from the assessee's father. The assessee claimed that the income should be assessed in the hands of the Hindu undivided family, while the Revenue contended it should be assessed in the individual capacity of the assessee. The Tribunal, relying on its Special Bench decision, held in favor of the assessee, leading to the reference to the High Court. The High Court considered the legal position surrounding the inheritance of property under section 8 of the Hindu Succession Act, 1956. There was a divergence of opinion among different High Courts on whether property inherited under this section constitutes individual or Hindu undivided family property. The Supreme Court's decision in CWT v. Chander Sen clarified this issue, holding that property inherited under section 8 is individual property, not Hindu undivided family property. The Supreme Court emphasized the importance of the language and intent of the Hindu Succession Act in determining the nature of inherited property. Based on the Supreme Court's ruling, the High Court concluded that when a son inherits property under section 8 of the Hindu Succession Act, it is in his individual capacity, not as karta of the Hindu undivided family. Therefore, the income derived from the self-acquired property of the father, received intestate, was held to be taxable in the individual capacity of the assessee, not as Hindu undivided family income. The High Court answered the referred question in the negative, in favor of the Revenue and against the assessee, thereby disposing of the reference with no order as to costs.
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