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TMI Blog1983 (6) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Rs. 2,74,500 being the amount due to the assessee-HUF from the bigger HUF of which Hukam Chand, the karta of the assessee-HUF, was a member, by observing as under : " For the assessment year 1972-73 the assessee has shown the net amount due from Pt. Lila Ram as Rs. 2,74, 500 (i.e., compensation payable Rs. 4,35,000 less amount adjusted by it : Lila Ram Rs. 1,60,500). This amount has not been shown during the period under assessment as it is stated that the actual amount was received in May 1972 by the assessee though the family had received it in May 1971 and was adjusted and carried out before31-3-1972. When the bigger family had received the said amount, it is to be found as to what was the position as on31-3-1971. Though the money w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [1966] 62 ITR 304 and Banarsi Dass v. CWT [1970] 76 ITR 104. These arguments were controverted by the learned counsel for the assessee, Mr. Mittal, who in support of his cross-objections urged that, in view of section 20(1), the wealth-tax assessment of the assessee-HUF was void ab initio. 5. We have given consideration to the above arguments. The existence of the bigger HUF of Lila Ram, of which Hukam Chand, the karta of the assessee-HUF, was a member at the beginning of the year under consideration, i.e., the assessment year 1971-72, is not in dispute. It is also not in dispute that there was a complete partition with effect from31-3-1971of the said bigger HUF of Lila Ram, vide partition deed dated19-6-1971which was duly registered. Un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reof, Pandit Hukam Chand shall have no further right or interest in the said claims and, in case the final figure of the claims falls short of the estimated value of Rs. 30,45,000 the shortfall will be borne by Pandit Lila Ram and his five other sons, Pandit Trilok Chand, Pandit Chet Ram, Pandit Dharam Singh, Pandit Prem Raj and Pandit Manohar Lal, in equal shares and in case there is any excess realisation, the same shall be equally shared by Pandit Lila Ram and his five other sons, Pandit Prem Raj and Pandit Manohar Lal (sic), and Pandit Hukam Chand shall have no right or interest in such excess. It is also expressly declared and recorded that the said sum of Rs. 4,35,000 to be paid to Pandit Hukam Chand in full and final settlement of hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Wealth-tax Officer, after enquiry, is satisfied that the joint family property has been partitioned as a whole among the various members or groups of members in definite portions, he shall record an order to that effect and shall make assessments on the net wealth of the undivided family as such for the assessment year or years, including the year relevant to the previous year in which the partition has taken place, if the partition has taken place on the last day of the previous year and each member or group of members shall be liable jointly and severally for the tax assessed on the net wealth of the joint family as such." By virtue of this provision a fiction has been created whereby though the joint property of the HUF stands parti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le on facts. In those cases, the partition was not partition as a whole but those cases were of partial partition. Even in respect of the partial partitions, section 20A of the Act, which was added by the Finance (No. 2) Act, 1980, with effect from 1-4-1980, the position would be somewhat similar to that (sic) in the matter of assessment after partition as a whole of a HUF as provided in section 20(1). 8. Having come to the above conclusion, we need not express our opinion on the ground of appeal raised by the revenue regarding the inclusion of the sum of Rs. 2,74,500 to the net wealth of the assessee-HUF. 9. In the result, the cross-objection by the assessee is allowed and the appeal by the revenue is dismissed. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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