Law:

Section:

Section 160 read with section 171 of Income-tax Act, 1961 (Corresponding to section 41(1) read with section 25A(3) of the Indian Income-tax Act, 1922) - Representative assessee - General - Assessment years 1941-42 to 1950-51 - In partition suit HUF property was decreed to be divided and receiver was appointed to manage properties - Neither receiver nor any member of family ever made claim before ITO that family properties had been divided in definite portions - No one ever required ITO to record finding under section 25A(3) of 1922 Act - Whether assessment of income in hands of receiver as representing HUF was valid - Held, yes - Whether recovery proceeding against family members could not be said to be illegal even if it be assumed that received had sufficient fund at this disposal - Held, yes Section 28(1)(a) read with section 41(1) of the I ndian Income-tax Act, 1922 - Penalty - For late filing of return - Assessment years 1941-42 to 1950-51 - Whether if receiver fails to furnish return of income within time, he incurs liability to imposition of penalty under section 28(1)(a) and ITO would be within power in imposing penalty - Held, yes FACTS The assessee was a HUF. One of the members of the HUF instituted a suit for partition and a preliminary decree came to be passed in 1931 partitioning the family property into five branches and on passing of final decree in 1939 family properties and assets were divided into five lots. Soon after the civil Judge appointed S and D as joint receivers for the entire Hindu undivided family estate. The receivers were, however, required to keep accounts of the income of the five branches separately. The receivers took possession of the entire estate of the Hindu undivided family on 10-5-1939. On 27-12-1939, the Civil Jude, directed the receivers to hand over possession of the properties allotted to the plaintiff's branch to the plaintiffs themselves. That appeared to have been done on 29-12-1939. From that date onwards the members of the plaintiff's branch were in direct possession of the properties allotted to them. With effect from 29-12-1939, they ceased to manage the properties allotted to the plaintiff's branch. From…

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