1984 (4) TMI 108 - AT - Income Tax

Appellate Assistant Commissioner Applied To Assessee s Appeal Assessment Order Change In Previous Year

Summary

Issues:
1. Whether there was a complete partition of the Hindu Undivided Family (HUF) on the death of the head of the family.
2. The status in which the assessee is assessable, i.e., 'individual or HUF', in respect of inherited shares in the estate.

Analysis:

1. The first issue revolves around the interpretation of whether there was a complete partition of the HUF on the death of the head of the family. The Tribunal had previously held that there was a complete partition of the HUF headed by the deceased, resulting in each heir receiving a separated share. The Tribunal relied on the case law of Gurupad Khandappa Magdum v. Hirabai Khandappa Magdum to support this interpretation. The Tribunal's decision was further supported by previous rulings in similar cases involving the deceased's other family members. The Tribunal rejected the assessee's reliance on other cases that suggested a different outcome, ultimately confirming the Commissioner (Appeals)'s finding of a complete partition of the HUF.

2. The second issue pertains to the status in which the assessee is assessable regarding the inherited shares in the estate. The assessee claimed that the inherited shares should be assessed under the status of HUF, while the Commissioner (Appeals) held that they should be assessed as an individual. The Tribunal considered various legal precedents cited by both parties, which discussed the inheritance of self-acquired property under the Hindu Succession Act. After reviewing the rulings from different High Courts, the Tribunal upheld the Commissioner (Appeals)'s decision that the inherited shares devolved on the assessee in his individual capacity, not as a member of the HUF. The Tribunal's decision was based on the interpretation of section 8 of the Hindu Succession Act and the exclusion of son's son as a heir under Class I of the Schedule to the Act.

In conclusion, the Tribunal dismissed all appeals by both the assessee and the revenue, upholding the decisions made by the Commissioner (Appeals) regarding the complete partition of the HUF and the assessment of inherited shares in the estate as individual assets.