9911796707
|
Home
Issues:
Validity of partial partition in a Hindu undivided family for the assessment year 1977-78 under section 256(1) of the Income-tax Act, 1961. Analysis: The case involved a Hindu undivided family with a partial partition claimed on April 1, 1976, wherein a sum of Rs. 3,05,000 was divided among family members. The Income-tax Officer rejected the partition stating that the karta could not carry out the partial partition without consent and added interest accrued due to the partition in the family's income. The Commissioner of Income-tax (Appeals) upheld the decision. However, the Income-tax Appellate Tribunal considered various legal precedents and observed that the karta has the power to effect a partial partition in the family's interest. The Tribunal found evidence of unequivocal intention from family members to partition and safeguarded the minors' interests by giving them substantial amounts. The Tribunal deleted the interest additions, relying on the decision of the Punjab High Court and the Calcutta High Court. The High Court referred to the apex court's decision in Apoorva Shantilal Shah v. CIT [1983] 141 ITR 558, which clarified that a father as karta can effect a partial partition without the consent of minor sons if it is in the family's best interest. The court emphasized that if a father can make a total partition, he can also make a partial partition. The court found no prohibition under income-tax law for partial partition and noted that the minors were not disadvantaged in this case. The court upheld the Tribunal's decision, stating that the partial partition was valid without the need for consent from minor sons. The reference was answered in favor of the assessee against the Revenue.
|
