1976 (9) TMI 76

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s common, we consolidate these two appeals and dispose them by a common order. 2. The only issue involved is whether the income derived from properties on the death of the assessee s father intestate should be assessed in the hands of the assessee as his "individual" income. The assessee is the son of late Shri. P. Audisesha Naidu. The said Audisesha Naidu succeeded to the properties of his mate .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Hindu Undivided family consisting of the three sons, their wives and children and the mother. It was also claimed before the Income-tax Officer that the income from the business started with the capital obtained from the sale proceeds of some of the properties which were divided among the brothers should also be assessed in the hands of a smaller Hindu Undivided Family consisting of the assessee, .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... tral in character. He submitted that the assessee s 1/4th share income from the properties received from his father and the business income earned out of the funds received from the assets of his father should be assessed in the hands of the assessee as an individual. He referred us to the decision in 96 ITR 634 in support of his stand. 4. On behalf of the assessee reliance was placed on the ord .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of Commissioner of Wealth- tax Gujarat I vs. Harshadlal Manilal (1) clearly supports the stand of the assessee. Their Lordships of Gujarat High Court in the above judgment had followed the ruling of the Supreme Court in the case of Arunachala Mudaliar vs. Muruganatha Mudaliar (2) and observed as under at page 96: " But as the Supreme Court pointed out in Arunachala Mudaliar vs. Muruganatha Muda .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... hat estate on the valuation date must be treated as the value of the estate belonging to the Hindu Undivided Family." 6. Having carefully perused both the above rulings of the Allahabad and Gujarat High Courts, with respect we prefer to follow the ruling of the Gujarat High Court. The Appellate Assistant Commissioner has accepted the assessee s contention, following the above Gujarat High Court .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X