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TMI Blog1983 (11) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee constructed a hospital building worth Rs. 2 1/2 lakhs or so during the assessment years 1970-71 to 1974-75 out of his own personal funds. The assessee claimed that the income from the said hospital building is assessable in the assessment of the HUF and not in the individual assessment. The ITO held that the investment in the said building is out of personal funds of the assessee. The assessee has not produced any evidence to prove that the investment in the hospital building was out of HUF nucleus. The ancestral nucleus is insignificant. The agricultural income was very small ranging from Rs. 5,000 to 6,000 which is only enough to meet family expenses. The income from residential house is always assessed in the individual han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... F. He did not also accept the contention of the assessee that a smaller portion of the investment in the building might have come from the savings out of ancestral agricultural income and, since, there was indiscriminate blending of funds of the family and of the individual, the property acquires the characteristic of a joint family ownership. He held that the facts of the case do not show that there was any joint family fund utilised for the construction of the building. Thus, he upheld the assessment orders. Against this the assessee has preferred these appeals. 3. The learned counsel for the assessee strongly urged that the assessee got 17 acres of land on partition of the joint family in 1956 between his father, himself and his brothe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hospital building. It will be useful to refer to certain observations in Mulla's Hindu Law, 15th edn. which read as under: "Where it is established or admitted that the family possessed some joint property which from its nature and relative value may have formed the nucleus from which the property in question may have been acquired, the presumption arises that it was joint property and the burden shifts to the party alleging self-acquisition to establish affirmatively that the property was acquired without the aid of the joint family. But no such presumption would arise if the nucleus is such that with its help the property claimed to be joint could not have been acquired. In order to give rise to the presumption the nucleus must be such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t any item of property is joint to establish the fact. But where it is established that the family possessed some joint property which from its nature and relative value may have formed the nucleus from which the property in question may have been acquired, the burden shifts to the party alleging self-acquisition to establish affirmatively that the property was acquired without the aid of the joint family property:..." In Mudigowda Gowdappa Sankh v. Ramchandra Revgowda Sankh AIR 1969 SC 1076, the Supreme Court observed as under : "... The law on this aspect of the case is well settled. Of course there is no presumption that a Hindu family merely because it is joint, possesses any joint property. The burden of proving that any particular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were dry lands. Apart from that the assessee had purchased 25 acres of agricultural land in 1963 and 1967 out of his own individual funds. The income estimated from the entire land, i.e., which he purchased out of his own funds as well as 17 acres got on partition, was only Rs. 6,000 as per the assessment order for 1971-72. Adopting that, the income from 17 acres would be around Rs. 2,500 only. The assessee has not placed any evidence to prove that any part of it was available for investment in the hospital building. We agree with the reasons given by the lower authorities that the entire investment in the hospital building has come out of individual funds of the assessee, being professional income, and not from the joint family funds. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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