1989 (6) TMI 52 - HC - Wealth-tax

Summary

Issues:
1. Whether a female member is entitled to a share on partition of properties in a joint Hindu family?
2. Whether, in view of the Kerala Joint Hindu Family System (Abolition) Act, 1975, only the presumptive share of the assessee can be included in computing his net wealth under the Wealth-tax Act, 1957?

Analysis:

Issue 1:
The case involved the assessment of an assessee to wealth-tax for the years 1977-78 and 1978-79, with the main objection being the status and inclusion of the entire property in the wealth-tax assessments. The Wealth-tax Officer assessed the respondent as an individual, including the entire assets of the Hindu undivided family. The Appellate Assistant Commissioner and the Appellate Tribunal held that, due to the Kerala Act, only the presumptive share of the assessee in the properties could be assessed. The Tribunal referred two questions to the High Court, including the entitlement of a female member to a share on partition of joint family properties. The High Court held that the extinction of the joint family by the Kerala Act did not automatically entitle the assessee's wife to a share in the properties, as it depended on the personal law governing the assessee and whether the wife could claim partition or a share based on that law.

Issue 2:
The Appellate Tribunal's decision to affirm the assessment based on only the presumptive share of the assessee was found to be erroneous by the High Court. The Court determined that the Tribunal failed to consider the specific personal law governing the assessee and whether the wife could claim a share on partition. The High Court directed the Tribunal to reevaluate the case, considering the proper law applicable to the parties and determining whether the wife had obtained any right in the property upon the joint family's extinction. The Tribunal was instructed to dispose of the appeals afresh with the necessary considerations and in accordance with the law.

In conclusion, the High Court declined to answer the questions referred to them due to the lack of relevant facts and findings. The Court directed the Income-tax Appellate Tribunal to reevaluate the case and dispose of the appeals afresh, considering the observations and directions provided in the judgment.