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Assessment of wealth-tax - Hindu undivided family or individual status Analysis: The case involved a reference under Section 27(1) of the Wealth-tax Act regarding the assessment status of the assessee as a Hindu undivided family or an individual. The facts revealed that the assessee, a widow, adopted a son and received a share of property post-partition. The Wealth-tax Officer and the Appellate Assistant Commissioner concluded that the property became the absolute property of the assessee and the adoption did not convert it into joint family property. On further appeal, the Tribunal held that the widow's right to make an adoption to her deceased husband was taken away by the Hindu Adoption and Maintenance Act, and the assessee should be assessed as an individual. However, the High Court disagreed with the Tribunal's interpretation of the Act. The High Court pointed out that the Tribunal's view on the provisions of the Hindu Adoption and Maintenance Act was incorrect and contradicted Supreme Court decisions. The Court referred to previous cases to emphasize that the adopted child becomes absorbed in the adoptive family and is tied to the relationship of sonship with the deceased husband. The Court did not delve into the question of whether the adopted child could divest the widow of her absolute estate but focused on the formation of a joint Hindu family upon adoption. The Court opined that a Hindu undivided family existed even without the adoption, considering the widow and her daughter as members. The Court distinguished between the continuance of a family upon the death of a male member and the formation of a new family post-partition. Ultimately, the Court held that the assessee should be assessed to wealth-tax in the status of a Hindu undivided family and not as an individual, ruling in favor of the assessee and awarding costs accordingly. In a concurring opinion, the second judge agreed with the assessment of the assessee as a Hindu undivided family for wealth-tax purposes.
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