9911796707
TMI Blog1988 (7) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... effected in the family on 13th April, 1979. Which is the valuation date for the asst. yr. 1979-80. In the assessment for the asst. yr. 1979-80, the WTO held as under: "In the Income-tax and Wealth-tax assessments for 1979-80 I had rejected the claim or partition and all the wealth and income offered in the three returns had been clubbed and considered in these assessments. Following the same procedure. I shall consider the entire income in the status of HUF, immovable properties admitted in the hands of bigger HUF by adopting the market value." 2. Aggrieved, the assessee filed an appeal before the CIT(A). The CIT(A) pointed out that the High Court in its order in W.M.P. Nos. 10383 and 10384 of 1987 in W.P. No. 7170 of 1987 had granted i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore us, the learned counsel appearing for the assessee submitted that the CIT(A) erred in holding that the partial partition effected on 13th April, 1979 connote be recognised even for the asst. yr. 1979-80 in paragraphs 3 and 4 of his order. He further contended that the order of the CIT(A) is erroneous in law as per the latest decision of the Madras High Court dt. 13th Jan., 1988 in the case of M.V. Valliappan and others vs. ITO (1988) 67 CTR (Mad) 289 (W.P. Nos. 992 and 993/81 162 and 6036/83 and 904, 994 995 5480, 6162, 9283/84 and also the order of Tribunal, Delhi Bench-E in the case of Paramatama Saran (HUF) vs. WTO (dt. 23rd Sept., 1982) reported in (1984) 7 ITD 630 (Del). It was, therefore, pleaded that the above said findings of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e family of Veerappan Chettiar on 13th April, 1979 the date of valuation, as the application of the amendment to s. 171 is contemplated for the asst. yr. 1980-81 onwards only. 4. I have considered the matter. If the partition effected after 31st Dec., 1978 is to be held as void ab initio. I do not envisage how the partition effected on 13th April, 1979 can be recognised by assessing officer while passing an order under s. 171 or under s. 20 of the WT Act. Under tax laws, an HUF is deemed to continue unless partition is recognised. Further the partial partition is not cognizable under the WT Act. Therefore, in my view the partition effected cannot be recognised even for the asst. yr. 1979-80 and the assessment of bigger HUF shall continue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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