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TMI Blog1990 (7) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... 69-70 and 1970-71. The eight questions referred in the former reference are : (1) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the status of the assessee was that of 'Individual' and not 'Hindu undivided family'? (2) Whether the Tribunal has considered all relevant materials and has not based its findings on irrelevant materials while determining the status of the assessee ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal was correct and had any material to hold that there was no new fact or material on record with the Appellate Assistant Commissioner enabling him to have come to a conclusion different from that arrived at by the Tribunal in its order dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estions referred in the second reference are : (1) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the status of the assessee was that of individual and not Hindu undivided family ? (2) Whether the Tribunal has considered all the relevant materials while determining the status of the assessee ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal was right in upholding the inclusion of the income under section 64 of the Income-tax Act despite the claim of partition of Eleye Cinema business with effect from April 1, 1967?" The Revenue and the assessee both represented that if the first question in the two references is answered, all other questions in the two refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s have crept in the records. Narindar Kaur deposed that she was in possession of the properties as per final decree and she furnished a list of them. Ripudaman Singh deposed that he managed Eleye Cinema hall and that he received properties as per the final decree. Tejdaman Singh deposed that he is in possession of the properties allotted to him. Besides the oral evidence, a host of assessment orders passed under the Income-tax Act are placed on record. We may briefly summarise what the orders relate to and for what assessment years. Sohan Singh and Tahel Singh are assessed as partners of a registered firm in the assessment orders for 1953-54. In the assessment orders for 1956-57 and 1957-58, the firm, Sardar Sahib Sohan Singh Rais and Son ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 1957-58 was shown as the property of the Hindu undivided family but, in the succeeding year 1959-60, the assessee is again taxed as an individual. Learned counsel for the assessee argued that, under the Mitakshara law, a coparcener is entitled to declare his personal individual property or self-acquired property as coparcenary property or joint property from the date of the declaration. A declaration of that nature is not a gift and is not a transfer. The Hindu law enables such a declaration to be made by any member of the Hindu joint family. If authorities are needed to such a proposition, it is found in G. Narayana Raju v. G. Chamaraju, AIR 1968 SC 1276, Gundlapalli Mohan Rao v. Gundlapalli Satyanarayana [1972] 84 ITR 685; AIR 1972 A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order under section 25A(1) had been passed. When such an order is made, the family ceases to be assessed as a Hindu undivided family. Thereafter, that family cannot be assessed in the status of a Hindu undivided family unless the order is set aside by a competent authority. Under clause (3) of section 25A, if no order has been made notwithstanding the severance of the joint family status, the family continues to be liable to be assessed in the status of a Hindu undivided family, but once an order has been passed, the recognition of severance is granted by the Income-tax Department, and clause (3) of section 25A will have no application." In this regard, a decision of the Punjab High Court, CIT v. Ganeshi Lal Sham Lal [1966] 61 ITR 408, ren ..... X X X X Extracts X X X X X X X X Extracts X X X X
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