9911796707
TMI Blog1994 (1) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... of a Hindu undivided family, which was assessed till then as undivided, such family shall continue to be liable to be assessed under the Act as if no such partial partition had taken place. It is not necessary to go into the other provisions of that section for the purpose of this case. The Explanation to that section reads that for the purposes of the section, partial partition shall have the meaning assigned to it in clause (b) of the Explanation to section 171 of the Income-tax Act. Sub-section (9) of section 171 of the Income-tax Act contains a similar provision for the purpose of the Income-tax Act. Under that sub-section also, if a partial partition takes place after December 31, 1978, among the members of a Hindu undivided family, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d is, therefore, invalid. It also said that the section has the effect of fastening a penal liability on the Hindu undivided family when in fact in the case of a partial partition, the liability for concealment of income is that of the member of the Hindu undivided family who earned the income in his own right and not of the Hindu undivided family and the provision of law, which has the effect of fastening such a penal liability in respect of something over which the Hindu undivided family has no control, cannot but be construed as arbitrary. Ultimately, the Bench has said that the effect of the section is that it virtually negatives the right of partition under the personal law only in certain cases of partition after December 31, 1978, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the assessment years 1980-81 and 1981-82, original assessments were completed on October 25, 1980, and November 19, 1981, respectively, accepting the returned income of the family as mentioned above. However, on March 27, 1982, the respondent initiated proceedings under section 147(b) of the Income-tax Act by issuing notices under section 148 of the Income-tax Act for the two assessment years proposing to reassess the income of the partially partitioned properties and called upon the petitioner to file returns within 30 days of the receipt of the notice. The petitioner, however, along with a covering letter dated April 21, 1982, filed returns, repeating the figures furnished in the original assessments and stated that the partial partitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hallenging the validity of section 20A of the Wealth-tax Act and for consequential orders. In W. P. No. 6049 of 1983, the petitioner, a member of the Hindu undivided family, was an assessee under the Wealth-tax Act. The family held a deposit of Rs. 66,026 with M/s. V. V. Vennia Perumal and Sons, Virudhunagar. The above deposit was subjected to a partition on March 31, 1979, with each of the male members taking a one-third share. Necessary entries in the books of account were made reflecting the above position and the petitioner, in the return for the year 1979-80, offered his share of the partitioned amount alone for assessment and filed a petition under section 20 of the Act for recognition of the partial partition, evidenced by the deed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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