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TMI Blog1984 (4) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... of 1977-78], for the assessment years 1969-70 and 1970-71 that he headed a HUF, constituted by him, his wife and his four sons. Sawai Man Singh died in June 1970 intestate. At that time HUF consisted of Sawai Man Singh, his four sons and his wife. Under proviso to section 8 of the Hindu Succession Act, 1956, as Sawai Man Singh left a female relative specified in Class I of the Schedule to the said section, the interest of the deceased devolved by intestate succession under the said Act. 3. The revenue has not accepted the Tribunal's order that Sawai Man Singh headed a HUF. According to the revenue, the status of Sawai Man Singh was individual. The ITO, accordingly, held that on the death of the said individual in 1970, his estate devolved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded by Sawai Man Singh depends on the interpretation of Gurupad Khandappa Magdum v. Hirabai Khandappa Magdum [1981] 129 ITR 440 (SC). This matter came up before the Tribunal Delhi Bench 'B' in the assessment years 1971-72 to 1976-77 in WT Appeal Nos. 885-890 (Delhi) of 1982 in the case of WTO v. H.H. Sirsawai Man Singhji of Jaipur [1984] 7 ITD 401, where the Tribunal has interpreted Gurupad Khandappa Magdum's case and held that on the death of Maharaja Man Singh, there was not only a partition in respect of the share of the late Maharaja in the HUF property but the partition was complete and the late Maharaja's widow and his four sons' shares also got partitioned as there was a complete partition of the HUF. The Tribunal had rejected the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om a real partition have to be logically worked out, which means that the shares of the heirs must be ascertained on the basis that they have separated from one another and had received a share in the partition which had taken place during the lifetime of the deceased. We are fortified in taking this view by the Tribunal Delhi Bench 'B' order in Sawai Man Singhji's (HUF)'s case where similar view has been taken. Respectfully following the said decision, we confirm the order of the Commissioner (Appeals) that there was a complete partition of the HUF (headed by Sawai Man Singh) on his death. 7. The next controversy is the status in which the assessee is assessable, i.e., 'individual or HUF', in respect of the said one-thirty-sixth share in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , CIT v. Smt. Nagarathnamma [1971] 76 ITR 352 (Mys.), CWT v. Chander Yen [1974] 96 ITR 634 (All.) and Addl. CIT v. P.L. Karuppan Chettiar [1978] 114 ITR 523 (Mad.)(FB). 10. We have carefully gone through the rulings relied on by both the sides. We find that the majority of the High Courts have taken the view that the self-acquired property inherited by the son is covered by section 8 of the Hindu Succession Act, and as son's son is excluded under the said section, therefore, the son alone inherits the property to the exclusion of his son. The Madras High Court in P.L. Karuppan Chettiar's case reviewed the case law, namely, Smt. Nagarathnamma's case, Ram Rakshpal Ashok Kumar's case, CWT v. Harshadal Manlal [1974] 97 ITR 86 (Guj.) and Ghasir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court's reliance on observations in Mulla's Principles of Hindu Law, 14th edition, page 847 was misplaced because the commentator was not dealing with the effect of section 8 of the Hindu Succession Act but only with the position under the Hindu law untrammelled by statutes and it occurred in the commentary to section 6 of the said Act which dealt with survivorship and saving by section 6 of that principle to the extent to which it has been done and the said passage in the said commentary was of no assistance in determining the impact of section 8 on the principle of devolution of property on the death of a male Hindu. 12. In Shrivallabhdas Modani v. CIT [1982] 138 ITR 673 which was followed in CIT v. Ratanlal [1982] 138 ITR 680 the Madhya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has considered only the Hindu Adoption and Maintenance Act and the general principles of Hindu law that the property which is inherited by a male Hindu from his father is ancestral property in his hands. The said High Court having not at all considered the provisions of section 8, the aforesaid judgment is of no assistance for deciding the controversy before us. 16. Respectfully following the decisions of the majority of the High Courts, we uphold the finding of the Commissioner (Appeals) that one-thirty-sixth share in the estate of the deceased Maharaja and one-sixth share in the assets left by late Maharaja abroad devolved on the assessee in his individual status as a heir of the late Maharaja. 17. No arguments were addressed before us ..... X X X X Extracts X X X X X X X X Extracts X X X X
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