9911796707
TMI Blog1986 (7) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... he common hotchpotch of the family. Partition of the HUF was effected on 15-8-1975 and different shares of house, in question, were allotted to the assessee, his wife and 5 major sons as recorded in the memorandum of partition dated 30-9-1975. The above partition was duly accepted by the revenue vide order dated 12-11-1976 passed under section 171 of the Income-tax Act, 1961 ('the 1961 Act'). In the assessment year 1976-77 and some other assessment years claim of the assessee that only value of the share falling to the assessee and her wife were assessable under section 4(1A) was accepted by the revenue in the assessment orders. However, in the assessment completed for the assessment year 1979-80 under section 16(5) of the Act, value of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to reproduce the clauses which were applicable after its amendment by the Taxation Laws Amendment Act, 1975, with effect from 1-4-1976 to the 'converted property' for computing the wealth of the assessee throwing his individual property in common stock of the family after 31-12-1969: "(a) the individual shall be deemed to have transferred the converted property, through the family, to the members of the family for being held by them jointly ; (b) the converted property or any part thereof shall be deemed to be assets belonging to the individual and not to the family; (c) where the converted property has been the subject-matter of a partition (whether partial or total) amongst the family, the converted property or any part thereof whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the partition, the value of the entire property is to be assessed in the hands of the individual only. There is no warrant to accept this proposition. To accept the above proposition would mean closing your eyes to clause (c) which specifically deals with situation after the 'converted property' has been subjected to a total or partial partition amongst the members of the family. One cannot give an interpretation which would leave above clause (c) redundant and meaningless. The two clauses i.e., (b) and (c) operate in different situations. Clause (b) operates so long the property is held by the family and clause (c) operates after the property has been partitioned amongst the members of the family. The two clauses are separated by a semi- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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