9911796707
TMI Blog1996 (1) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in this appeal is whether the assessment should be made in the Status of HUF or in the Status of an individual. The assessee filed the return of income in the status of HUF. The Assessing Officer in accordance with the provisions of the Kerala Joint Hindu Family System (Abolition) Act, 1975, which came into operation with effect from 1-12-1976, held that no HUF existed and no such assessment in the status of HUF can be made. The Assessing Officer further held that the income declared by the assessee HUF is assessable in the hands of the assessee, in his individual capacity. 4. The appellant being aggrieved by the assessment order of assessing his income in the status of Individual disputed the said view before the Dy. CIT (Appeals). Wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rect and legal and, therefore, the asssessee's appeal be allowed. 6. The learned departmental representative Sri T. John George also argued elaborately. He submitted that whether there is a disruption of HUF or not, the abolition of such family by the Kerala Act coming into force with effect from 1-12-1976 has to be acted upon. He relied on the provisions of the Kerala Joint Hindu Family System (Abolition) Act and in support of this contention he relied on the decision of the jurisdictional High Court in the case of Shantilal C. Shah v. CIT[1988] 169 ITR 805/37 Taxman 28 (Ker.), wherein the High Court held that 'the Appellate Tribunal was right in holding that the Hindu undivided family of the assessee got partitioned with effect from Dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. 8. The Supreme Court in the case of R.B. Tunki Sah Baidyanath Prasad v. CIT [1995] 212 ITR 632/80 Taxman 71 held-- "affirming the decision of the High Court, that section 171 of the Income-tax Act, 1961, created a deeming fiction of the continuance of the Hindu Undivided Family except where a finding of partition was given in respect of the concerned Hindu Undivided Family. Before this finding was recorded an inquiry had to be undertaken on the question whether there had been a total or partial partition of the joint family property and if there had been any such partition, the date on which it took place. In view of the language of section 171(1), the Hindu undivided family would be able to be taxed as undivided notwithstanding the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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