Clause 169 - Assessment after partition of a Hindu undivided family. - Direct Taxes Code, 2010

Assessment after partition of a Hindu undivided family. 169. (1) A Hindu undivided family, hitherto assessed as undivided, shall be deemed, for the purposes of this Code, to continue to be a Hindu undivided family, except where, and in so far as, a finding of partition has been given under this section in respect of the Hindu undivided family. (2) The Assessing Officer shall— (a) make an inquiry into the claim of partition made by, or on behalf of, any member of a Hindu undivided family, hitherto assessed as undivided, at the time of making the assessment; (b) give notice of the inquiry to all members of the family; and (c) record a finding as to whether there has been a total, or partial, partition of the joint family property and, if there has been such a partition, the date on which it has taken place. (3) The tax bases of the Hindu undivided family, hitherto assessed as undivided, shall, for the financial year in which the partition took place, be the tax bases in respect of the period up to the date of partition, as if no partition had taken place. (4) Each member, or group of members, of the Hindu undivided family, hitherto assessed as undivided, shall be jointly and severally liable for tax on the tax bases of any financial year or period, up to the date of partition, and such tax shall be recovered from him, or them, accordingly. (5) For the purposes of this section, the several liability of any member, or group of members, shall be computed according to the portion of the joint family property allotted to him, or to them, upon the partition. (6) The provisions of this section shall, so far as may be, apply in relation to the levy and collection of any penalty, interest, fine or other sum in respect of any period upto the date of the partition, whether total or partial, of a Hindu undivided family as they apply in relation to the levy and collection of tax in respect of any such period. (7) For the purposes of this Code, no claim of partial partition of a Hindu undivided family shall be inquired into, or recognised as such. (8) In case of a partial partition of a Hindu undivided family— (a) the Hindu undivided family shall continue to be assessed under this Code as if no partial partition had taken place; and (b) the liability of that Hindu undivided family or its members under this Code, before or after the partial partition, shall remain the same. (9) In this section— (a) "partition" means— (i) where the property admits of a physical division, such division of the property, but a physical division of the income without a physical division of a property producing the income shall not be deemed to be a partition; or (ii) where the property does not admit of a physical division, then such division as the property admits of, but a mere severance of status shall not be deemed to be a partition; (b) "partial partition" means a partition which is partial as regards the persons constituting the Hindu undivided family, or the properties belonging to the Hindu undivided family, or both.