9911796707
TMI Blog1982 (7) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... same with the character of joint family property and, therefore, his share of income from the partnership has to be assessed in the hands of the family and assessed the entire share income from the partnership in his individual assessment. Aggrieved against the said assessment, the assessee filed an appeal to the Appellate Assistant Commissioner, who held that the assessee was at full liberty to throw his interest in the firm into the common hotchpot and impress it with the character of joint family property and that the assessee having done so by a declaration dated March 12, 1973, the income attributable to his share in the partnership should have been considered as the income of the Hindu undivided family subject to the provisions of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rily thrown by the owner into the common stock, with the intention of abandoning his separate claims therein." It is not in dispute, in this case, that the assessee, had, in fact, executed a deed of declaration dated March 12, 1973, impressing his share in the partnership with the character of the joint family property. The truth and genuineness of the said declaration is not disputed by the Revenue. If this declaration is valid, then his share in the partnership belongs to the Hindu undivided family as and from March 31, 1973. After that date, the income attributable to the assessee's share in the partnership should be treated as the income of the Hindu undivided family. Before the Tribunal, it was contended on behalf of the Revenue th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad no liabilities at all, and the fact that there is a possibility of there being a future loss cannot make the assessee's declaration invalid, that the possibility of future liability cannot be taken into account as one must see the position on the day the properties were thrown into the common hotchpot and that on that day, the partnership having been shown to have no liability, the Revenue cannot raise the bogey of a possibility of future liability while considering the assessee's case based on the declaration dated March 12, 1973. The learned counsel for the Revenue does not dispute before us the position that though the interest in a partnership which was the selfacquired property of a coparcener, can legally be thrown into the commo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t will not convert such net positive asset into a present liability. In CIT v. Keshavlal Prabhudas Shah [1981] 131 ITR 229 (Guj), an identical question arose and there also the Revenue contended that as there is a possibility of the joint family being fastened with a future liability, the share of a partner cannot be thrown into the common stock and it was held that a share in a firm is an asset and it is open to a coparcener of an undivided Hindu family to impress that asset which is his self-acquired property with the character of the joint family property and there is no legal bar or impediment for such conversion, and that mere risk or possibility of the firm suffering losses in the future will not and cannot convert the share in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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