9911796707
TMI Blog1973 (8) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, they are being disposed of by a common judgment. Late Rangi Lal and his son, Chander Sen, constituted a Hindu undivided family. This family had some immovable property and a business carried on in the name of Khushi Ram Rangi Lal. On October 10, 1961, there was a partial partition in the family by which the business was divided between the father and the son, and, thereafter, it was carried on by a partnership consisting of the two. The firm was being assessed to income-tax as a registered firm and the two partners were being separately assessed in respect of their share of income. The house property of the family continued to remain joint. On July 17, 1965, Rangi Lal died leaving behind him his son, Chander Sen, and his grandsons, i.e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in the computation of the business income of the assessee-family. At the end of the year the credit balance in the account of Rangi Lal stood at Rs. 1,82,742 which was transferred to the account of Chander Sen. In the wealth-tax assessment for the assessment year 1967-68, it was claimed, as in the earlier year, that the credit balance in the account of Rangi Lal belonged to Chander Sen in his individual capacity and not to the assessee-family. The Income-tax Officer who completed the assessment disallowed the claim relating to interest on the ground that it was a payment made by Chander Sen to himself. Likewise, in the wealth-tax assessment, the sum of Rs. 1,82,742 was included by the Wealth-tax Officer in the net wealth of the assessee-f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herited, after his death, by Chander Sen in his individual capacity or as a karta of the assessee-joint family consisting of himself and his sons. The amount in question represents the capital allotted to Rangi Lal on partial partition and accumulated profits earned by him as his share in the firm. While Rangi Lal was alive this amount could not be said to belong to any joint Hindu family and qua Chander Sen and his sons it was the separate property of Rangi Lal. On Rangi Lal's death the amount passed on to his son, Chander Sen, by inheritance. Under the Hindu law when a son inherits separate and self-acquired property of his father, it assumes the character of joint Hindu family property in his hands qua the members of his own family. But ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Full Bench of this court in the case of Lala Narendra Lal Shamli v. Commissioner of Income-tax has also laid down the same proposition. The principle laid down in these cases would apply to the share of Chander Sen allotted to him on partition with his father in 1961. That share would undoubtedly belong to the Hindu undivided family of himself and his sons. There is no dispute with regard to that. The assessee itself has treated the share of Chander Sen obtained on partition as the property of the assessee-family. The question in the instant case relates to the separate property of Rangi Lal, which passed on his death to his son, Chander Sen. In view of the decision of this court in Khudi Ram Laha v. Commissioner of Income-tax it has to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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