Law:

Section:

Section 171 of the Income-tax Act, 1961 (Corresponding to section 25A of the Indian Income-tax Act, 1922) - Hindu Undivided family - Assessment after partition - Assessment year 1955-56 - In course of assessment proceedings against a HUF, an application under section 25A of 1922 Act was made claming partition - ITO having recorded statements of various members of HUF including appellant rejected claim, under section 25A of 1922 Act - Thereupon, a suit for partition was filed and City Civil Court passed a decree for partition - On appeal before AAC, reliance was placed on said decree - AAC, however, dismissed appeal - A second appeal to Tribunal was also dismissed - Thereafter, assessments were made against HUF up to assessment year 1965-66 - A large sum of tax and penalty became due - Income-tax authorities, thus, took steps for realisation of dues against appellant's family and got attached various properties - Appellant filed writ petition challenging order of assessments as well as attachment orders - High Court dismissed writ petition in limine - Whether income-tax authorities had to take their own view and they were not bound by partition decree passed by City Civil Court - Held, yes - Whether, therefore, when income-tax authorities rejected HUF's claim for partition, appellant was bound by assessments made in respect of income of his family which continued to be joint in eye of law - Held, yes - Whether, consequently, share of appellant's properties received by him from HUF or income thereof was liable for income-tax dues in question - Held, yes FACTS One 'B' was the head of a HUF. He had five sons. The appellant in instant writ appeal was son of a deceased son of 'B'. In the course of the proceedings for assessment for the relevant assessment year against the Hindu undivided family of 'B' an application under section 25A of the 1922 Act was made claiming partition with effect from 24-10-1954. Notices of the enquiry under section 25A of 1922 Act were served on all the members of the family. The statements of various persons including the appellant were recorded by the Income-tax Officer. He, however, disallowed the claim under section 25A of 1922 Act. In…

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