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TMI Blog1991 (10) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... was not in existence. Therefore, the assessments made in the status of HUF are bad in law. According to the assessee, the HUF did not subsist as a suit for partition was instituted by one of the family members. 3. In ground No. 4 of the C.Os., the valuation of plots is disputed and in ground No. 5 thereof it is pleaded to apply the provisions of section 7(4) of the Wealth-tax Act, 1957, to value the residential house. 4. At the outset we are satisfied to direct the WTO to value the residential house by applying the provisions of section 7(4) of the W.T. Act. However, if the Dy. CWT(A)'s orders are set aside for not following the mandatory provisions of issuing a notice to the Departmental Valuation Officer and hearing him before passing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd legal representatives. One of the daughters Smt. Mandabai wife of Manoharrao Ansurkar gave a notice of her intention claiming the partition of her share from the HUF property of late Sitaram Mahadeo Dahiwalkar. She also filed a civil suit for partition on 17-11-1976 and got an injunction restraining the respondents therein from disposing of the property in any manner whatsoever without a due process of law by order dated 3-1-1979. 8. Shri Dewani's contention is that giving a notice by one of the members of the family and filing a suit for partition amounts to disruption of the status of HUF as well as the properties held by the HUF. Therefore, the WTO would not have made assessments in the status of HUF and after disruption of the stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of HUF under section 171 of the Income-tax Act and the character of the income of the HUF continued for the purpose of assessment, that does not mean any other meaning can be attributed under the Wealth-tax Act. If the disruption had not taken place under the Income-tax Act then it cannot be said that disruption of the status of the HUF has taken place under the Wealth-tax Act in view of the said judgment. 11. It would not be out of context to mention here the provisions of sections 19 and 20 of the Wealth-tax Act, 1957, particularly section 20(2) of the Wealth-tax Act, 1957, which reads as follows : " 20(2). Where the (Assessing Officer) is not so satisfied, he may, by order, declare that such family shall be deemed for the purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an end, and the joint status cannot continue until the actual division or partition is made by metes and bounds. This decision of the Calcutta High Court was also under the Income-tax Act by issuing a notice under section 148 of the Income-tax Act, 1961. He has filed another decision of the Calcutta High Court in support of the same contention in the case of Kaniram Hazarimal v. CWT [1974] 96 ITR 661 and pointed out relevant observations from page 666. However, the decision of the Supreme Court in the case of Smt. K.N. Sarada Thampatty has to prevail over the Calcutta High Court decisions. 13. Mr. Dewani also relied on the judgment of the Supreme Court in the case of Mudigowda Gowdappa Sankh v. Ramchandra Revgowda Sankh AIR 1969 SC 1076. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the Land Ceilings Act. The Supreme Court held that all members together were entitled to one ceiling unit only. Sections 3, 4 and 6 of the Hindu Succession Act were also considered with reference to the Maharashtra Agricultural Lands (Ceiling on Holdings) Act. The question of assessment of income was not involved either for the purpose of income-tax or wealth-tax. 14. Shri Dewani has further relied upon the judgment of the Allahabad High Court in the case of Bhagwat Prasad v. CIT [1983] 139 ITR 961. In that case the question involved was after remand whether the assessment was made as a regular under section 143(3) or an ex parte assessment under section 144 of the Income-tax Act. the question of disrupting a family was not involved i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the orders of the Dy. CWT(A) are set aside and the same are remitted back to him to consider under section 18(1)(a) and 18(1)(c) of the Wealth-tax Act, 1957, after passing fresh order by giving an opportunity of being heard to the Departmental Valuation Officer in the department's appeals. 17. WTA Nos. 122/Nag.190 to 129/Nag.190 : These appeals are filed by the revenue against the common order of the Dy. CWT (A), Akola Range, Akola, dated Nil. However, the point involved therein was the valuation of the properties owned and possessed by the assessee. The Departmetal Valuation Officer was asked to make the valuation of die said property and he has furnished his report. It is a mandatory provision under the Wealth-tax Act before passin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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