Law:

Section:

Section 4 of the Income-tax Act, 1961 - Hindu undivided family - Assessable as - Assessment year 1962-63 - Assessee executed a will wherein he treated his house property as joint family property - ITO as well as WTO took view that desire of assessee would be effective only after his death, and that assessee being alive, property should be taken as his own and not of HUF - Tribunal, however, opined that though intention to impress property with character of HUF was disclosed by assessee in will, which could come into operation only after his death, still declaration of such intention could be taken to impress house property with character of HUF - It accordingly excluded income form said property from assessee's total income and value of that property for wealth-tax purposes - Whether in view of fact that while executing will, assessee made his intention clear by saying that he had no separate interest over said property except as that of HUF, property in question was to be treated as property of HUF - Held, yes - Whether, therefore, order passed by Tribunal was to be affirmed - Held, yes Section 2(m) of the Wealth-tax Act, 1957 - Net wealth - Assets belonging to assessee - Assessment years 1962-63 and 1963-64 - Whether in view of facts stated under 'HUF - Assessable as' value of house property had to be excluded for wealth-tax purposes - Held, yes FACTS The assessee executed a will wherein he treated his house property as joint family property, and stated therein that he had no separate interest over the property except as that of HUF. He had also reserved the power to vary the terms of the will in respect of his individual assets. Both the ITO and the WTO held that the assessee had merely expressed a desire to impress the house property with the character of joint family property that such a desire would be effective only after his death, and that the assessee being alive, the property should be taken as his own and not of HUF. They accordingly completed the assessments. On second appeal, the Tribunal took the view that though the intention to impress the property with the character of a joint family property was disclosed by the assessee in the will, which…

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