Law:

Section:

Section 171 of the Income-tax Act, 1961 - Hindu Undivided Family - Assessment after partition - Assessment years 1961-62, 1962-63 and 1963-64 - Petitioner and his father constituted a HUF which was assessed to tax for relevant assessment years - As dues were not paid, recovery certificates were issued and in pursuance thereof TRO attached several properties including lands in question - Petitioner filed a claim petition claiming that properties could not be attached for recovery of amount due from his father as said properties were partitioned and lands fell to his share under a registered deed dated 2-9-1962 - Petitioner further averred that for accounting year 1963-64, his father showed his status as individual and referred to registered partition deed but, ITO did not issue any notices nor did he hold any enquiry and completed assessment in status of HUF - TRO found that partition was not genuine and, therefore, rejected claim petition - Whether once a claim for partition of HUF is set forth, it is impetrative that notices to members of family must be given, enquiry must be held and a finding agent to be recorded - Held, yes - Whether, therefore, it disregarding claim of partition made by any member, whether deliberately or inadvertently, an assessment is made it would be inconsistent with section 171 and will be an assessment order passed without following essential procedure and consequently would be illegal - Held, yes - Whether having regard to aforesaid legal position, since, in instant case, ITO before completing assessment did not issue any notices nor did he record any finding in respect of petitioner, instant writ petition was to be allowed, and consequently, it was to be held that petitioner was not liable to pay any tax due in pursuance of assessment order made for accounting year 1963-64 relating to portion of that year after date of executing registered partition deed i.e., 2-9-1962 - Held, yes FACTS The petitioner and his father, 'K' constituted a HUF. The said family was assessed to pay income-tax for the assessment years 1961-62, 1962-63 and 1963-64. As the dues were not paid, the recovery certificates were issued. In order to recover this…

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