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Issues Involved:
1. Whether the income from the property known as 'Kathoke Lodge' should be assessed as the income of the Hindu undivided family (HUF) of which the assessee was the Karta. Issue-wise Detailed Analysis: 1. Nature of the Property and Declaration: - The property 'Kathoke Lodge' was self-acquired by the assessee. - On January 26, 1956, the assessee declared the property to be part of the family hotchpot, intending to hold it as Karta of his Hindu joint family, consisting of himself, his wife, and one child (a daughter). 2. Assessment by Tax Authorities: - The Income-tax Officer rejected the claim, stating there was no nucleus of HUF property to mix with the self-acquired property. - The Appellate Assistant Commissioner disagreed with the Income-tax Officer's reasoning but held that there was no evidence showing the property was treated differently after the declaration. - The Tribunal found the declaration valid but concluded that the property remained the individual property of the assessee since he was the sole male member. 3. Legal Arguments and Precedents: - The assessee argued that a Hindu male could convert self-acquired property into HUF property without needing an ancestral nucleus or another male member. - The department contended that a single male member cannot form an HUF with only female members and that a coparcenary is necessary for blending self-acquired property into HUF property. - The Tribunal and tax authorities relied on the Privy Council decision in Kalyani Vithaldas v. Commissioner of Income-tax, which held that income from ancestral property remains individual income if the owner has no son. 4. Analysis of the Privy Council Decision in Kalyani Vithaldas: - The Privy Council held that the existence of a wife or daughter does not make ancestral property joint family property. - The income from such property is considered individual income until a son is born. 5. Supreme Court's View in Narendranath's Case: - The Supreme Court distinguished between property received as joint family property and property received as self-acquired. - The Court accepted that a single male member with female members could constitute an HUF but emphasized that the property must retain its character as joint family property. 6. Application to the Present Case: - The assessee's declaration did not change the nature of the income from 'Kathoke Lodge,' which remained his individual income. - The assessee's family, consisting of himself, his wife, and daughter, did not alter the ownership or control of the property or its income. 7. Conclusion: - The income from 'Kathoke Lodge' should be assessed as the individual income of the assessee. - The Tribunal's decision was upheld, and the question was answered in the negative, meaning the income was not to be assessed as HUF income. Final Judgment: - The court concluded that the income from 'Kathoke Lodge' remained the individual income of the assessee, and the assessee was liable to pay costs to the Commissioner.
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