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TMI Blog1999 (9) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... nt years are invalid. 2. The learned Senior Departmental Representative [SDR for short] Mr. Choudhary and the learned counsel for the assessee Mr. Venkatesan had addressed us at length and referred to various decisions in support of then respective contentions. We have taken into consideration the arguments that were so advanced by both parties, the paper book that was filed during the hearing that was referred to during the hearing and the case laws that were referred to. The only issue that arises in all these three appeals whether the assessment that has been framed on the HUF was valid or not because on 28th March, 1989, the date on which the assessment order was passed the HUF had did not exit because the karta Mr. Nanjappa who died ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the AO under the provisions of section 171 of the Act. He insisted that the HUF would be deemed to continue under the Act so long as the AO does not recognize the partition of the HUF. He further pleaded that the information sent by Mr. Basavaraj to the AO was not so provided in the course assessment of the HUF and therefore, AO not acting on it would not in any way affect the assessment framed on the HUF. SDR submitted that for the assessment year 1984-85 the assessment on the HUF was framed treating Mr. Basavaraj as the Karta and the Tribunal had held that he could not have been named as Karta because of his renunciation having been recognized by the Civil Court. ]'his decision did not consider the provisions of section 171 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order under section 171 of the Act, Mr. Basavaraj should be treated as member of the HUF and from the death of his father as Karta of the HUF is without any merit because of the accepted fact that the renunciation by Mr. Basavaraj did not result in any partition of the assets of the HUF. 7. Because, the issue in the present appeals have to decide with reference to the effect of renunciation of the family along with its properties, etc., we have given our vary consideration and observe as under. The word 'renounce' (verb of renunciation) [as contained in Aiyar's Law Terms and Phrases] means, 'to give up a right'. Cambridge International Dictionary of English gives the meaning as 'to declare formally or publicly by a person that he is no lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other members continue joint as before. The effect of renunciation is to reduce the number of persons to whom shares would be allotted if and when a division of the estate takes place". 9. In the same book there is deliberation on the partition by decree or court from the point of view of that the filing of the suit for partition itself operates as a partition for which no decree is necessary. It reads at page 458, 'the view that where a suit is brought for partition, there is no partition or severance of the joint family status until a decree is passed is no longer tenable for, as held by the Judicial Committee the very institution of a suit operates as a partition..., though a decree may be necessary for working out the results of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e family and the remaining members continued to remain joint. The renouncing act has in effect reduced the number of members from three to two who may receive shares if and when partition takes place. Because the suit of renunciation was specifically for separation from the family and its property that did not result in any partition of the property, the Civil Court had decreed that Mr. Basavaraj has separated himself from the family and from then onwards would not be treated as a member of the HUF and thus is not entitled to claim any share in the property of the HUF. This decree is an admissible piece of evidence and on that basis Mr. Basavaraj is not a member of the HUF of Nanjappa from 14-12-1982. Because, he is not a member of the HUF ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act has the provision by which the legal heirs of the deceased could be substituted and the assessment could be framed on the legal representative. If the deceased has left a will with an executor, the executor is assessed for the estate. In the case of discontinued firm there is provision for framing the assessment on the firm deeming it to be existence. However, in so far as the HUF is concerned the Income-tax Act contains no provision for a situation like in the present case where the HUF ceases to exist as is available when an individual dies. We are therefore of the opinion that the assessments made on the Nanjappa HUF for the assessment years from 1983-84 are invalid and accordingly are set aside. One point that was raised was with r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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