1969 (9) TMI 9 - HC - Income Tax

Summary

Issues:
Assessment of the assessee in the status of an individual for the assessment year 1964-65.

Analysis:
The case involved a question regarding the assessment status of the assessee for the assessment year 1964-65. The assessee, a member of a Hindu undivided family, claimed to be assessed in the status of a Hindu undivided family instead of an individual. The assessee, along with his father and brother, had a partition recognized by the department, resulting in the assessee receiving certain properties. The dispute arose when the assessee, who was unmarried at the time of partition and during the relevant assessment period, filed a return as an individual for the year in question. The Income-tax Officer, Appellate Assistant Commissioner, and Income-tax Appellate Tribunal all held that the assessee should be assessed as an individual. The Tribunal referred the question to the High Court for a decision.

The High Court analyzed the concept of a Hindu undivided family and the requirements for its constitution. Referring to relevant legal precedents, including the Supreme Court's decision in Gowli Buddanna v. Commissioner of Income-tax, the Court emphasized that a Hindu undivided family can consist of a single male member along with his wife and unmarried daughters. The Court also considered the implications of the partition on the character of the properties received by the assessee.

The Court further examined the legal principles governing Hindu joint families and cited various authorities, including Mayne's Treatise on Hindu Law and Mulla's Principles of Hindu Law. The Court noted that while a coparcener's share on partition retains the character of ancestral property, the formation of a joint family requires more than one member. The Court highlighted that until the male member marries and has a wife, he cannot be considered a Hindu undivided family by himself.

Based on the legal analysis and precedents cited, the High Court concluded that the assessee was rightly assessed in the status of an individual for the assessment year 1964-65. The Court held that the assessee, being unmarried and without a wife or children during the relevant period, did not meet the requirements to constitute a Hindu undivided family as per Hindu law. Therefore, the Tribunal's decision to assess the assessee as an individual was upheld, and the question was answered in the affirmative against the assessee. No costs were awarded in the circumstances.