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Issues:
1. Whether the correct status of the assessee should be Hindu undivided family for the assessment years 1974-75 and 1975-76? Analysis: The case involved a question of law regarding the status of the assessee as a Hindu undivided family for the assessment years 1974-75 and 1975-76. The facts of the case revolved around the reconstitution of a firm after the death of one of the partners, where the capital inherited by the surviving partner and his sons was credited to the account of the Hindu undivided family. The assessee later claimed partition of the joint capital, which was allowed by the Income-tax Officer. However, the Income-tax Officer and the Appellate Assistant Commissioner assessed the assessee as an individual, contrary to the claim of being assessed as a Hindu undivided family. The Appellate Tribunal, disagreeing with the lower authorities, held that the income received by the assessee on partition should be treated as joint family property, supporting the claim of the assessee. The Tribunal emphasized the right of a member of a Hindu undivided family to convert self-acquired property into joint family property by demonstrating clear intention, which was established in this case. The legal position regarding the doctrine of blending was discussed, emphasizing the preconditions for applying it, including the existence of coparcenary, coparcenary property, and separate property of a coparcener. The judgment highlighted that the doctrine of blending does not apply to Hindu females. The court referred to relevant case laws to support its decision, acknowledging a differing view in a specific scenario but ultimately upholding the Tribunal's decision based on the acceptance of the claim of partition and the existence of a Hindu undivided family. The court also referred to decisions from other High Courts and the Supreme Court to support the assessee's claim of being assessed as a Hindu undivided family. In conclusion, the court held in favor of the assessee, agreeing with the Tribunal's decision that the status of the assessee should be considered as a Hindu undivided family for the assessment years in question. The judgment highlighted the application of legal principles, case laws, and the specific facts of the case to support this decision. No costs were awarded in the case, and the judgment was delivered unanimously by the judges.
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