1983 (8) TMI 152 - AT - Income Tax

Summary

Issues:
1. Partial partition claimed by the assesses for the assessment years 1979-80 and 1980-81.
2. Quantum of assessment in the assessment years under consideration.

Detailed Analysis:

Issue 1: The assesses claimed partial partition in the family for the assessment years 1979-80 and 1980-81. The Income Tax Officer (ITO) rejected the partial partition claim under section 171(9) of the Income Tax Act, 1961, assessing the income of the assesses as a Hindu Undivided Family (HUF). The Appellate Authority Commissioner (AAC) upheld the ITO's decision. The assesses contended that the non-acceptance of partial partition was unjustified, citing the need for an amendment to section 64 of the Act. However, the departmental representative argued that the actions of the ITO and AAC were in line with the provisions of section 171(9) and referred to relevant case law. The Tribunal held that section 171(9) applied to the assessments under consideration, and the income excluded by partition or partial partition should be included in the assessment of the HUF. The Tribunal set aside the AAC's order, ruling in favor of the revenue on the issue of partial partition.

Issue 2: The quantum of assessment was deemed consequential to the partial partition issue. As the Tribunal decided in favor of the revenue on the partial partition matter, it held that the quantum of assessment should also be determined accordingly. Therefore, the Tribunal allowed the appeals, upholding the assessment of the income of the HUF as per the decisions made regarding the partial partition issue.

In conclusion, the Tribunal consolidated the appeals and passed a consolidated order due to the common issues involved. It found in favor of the revenue, upholding the assessment of the income of the HUF as per the provisions of section 171(9) of the Income Tax Act, 1961. The Tribunal set aside the AAC's order on the issue of partial partition and deemed the quantum of assessment to be consequential to the decision on partial partition, ultimately allowing the appeals.