1991 (10) TMI 85 - AT - Wealth-tax

Summary

Issues:
1. Entitlement of a female member to a share on partition of properties in a joint Hindu family.
2. Inclusion of presumptive share in computing net wealth under the W.T. Act, 1957.

Analysis:

Entitlement of Female Member to Share on Partition:
The High Court directed the Tribunal to consider if a female member is entitled to a share on partition of properties in a joint Hindu family. The Tribunal assessed the case involving an assessee claiming Hindu Undivided Family (HUF) status. The Kerala Joint Hindu Family System (Abolition) Act, 1975, impacted the assessment, leading to a dispute on the share entitlement. The High Court emphasized determining the applicable school of Hindu law and whether the female member can claim a share based on maintenance or marriage rights. The Tribunal established the assessee and his wife's affiliation with the Hindu Mitakshara School of law, prevalent in southern India, thereby applying Hindu (Mitakshara) law as modified by custom.

Inclusion of Presumptive Share in Wealth Tax Assessment:
The Tribunal analyzed the burden of proof on the assessee to establish the wife's entitlement to a share under community customs. The Kerala Joint Hindu Family System (Abolition) Act's impact post-cessation of HUFs was crucial. The Tribunal scrutinized partition deeds to determine share entitlements for female members. While one deed did not allot shares to female members, another deed showed varying customs within the community. Ultimately, the Tribunal held that the assessee's wife was not entitled to a share post the Act's commencement, leading to the reversal of the previous order in favor of the revenue.

Conclusion:
The Tribunal's decision favored the revenue, disallowing the wife's share entitlement post the Kerala Joint Hindu Family System (Abolition) Act's enforcement. The judgment emphasized the importance of proving customs for female share entitlement and the impact of specific laws on joint family properties. The analysis highlighted the necessity of clear evidence to establish entitlements under Hindu law and customs, ultimately impacting wealth tax assessments.