Law:

Section:

Section 4 of the Income-tax Act, 1961 (corresponding to section 3 of the Indian Income-tax Act, 1922) - HUF - Assessable as - Assessment year 1961-62 - Whether where deed of partition showed that property belonging to assessee-HUF had been partitioned between members of family, income from such property could not be assessed in hands of HUF - Held, yes FACTS One 'G' died in 1943 leaving behind his wife 'R' and four sons. 'R' purchased a plot of land in her own name as stated in the statement of the case. After the said purchase, a five-storeyed building was erected on the said land. The assessee had been assessed in the status of a HUF and in course of such assessment as it was contended on its behalf that the family was divided, the ITO issued notices to the members and they submitted that there had been a complete partition of the joint family and the property had been partitioned by metes and bounds. However, the ITO held that the said property was not partitioned by metes and bounds and accordingly he assessed the income of said property in the hands of the HUF. On appeal, the AAC deleted the addition. The Tribunal affirmed the AAC's order. On reference : HELD The deed of partition annexed to the statement of case conclusively showed that property in question had been partitioned between the members of the family. Therefore, it could be concluded that the income from the property in question could not be assessed in the hands of the HUF. Note : The case has been decided in favour of the assessee. JUDGMENT S.C. Deb, J.-This is a reference under section 256(1) of the Income-tax Act, 1961. The statement of the case relates to the assessment year 1961-62, the relevant previous year being 1367 B.S. One Gour Hari Seal died in or about 1943, leaving behind him his widow, Ratnamala Dassi and four sons, Naba Kumar, Tincowrie, Bhupen and Samar. In 1948, Ratnamala purchased a plot of land in her own name as stated in the statement of the case. After the said purchase, a five-storeyed building was erected on the said land. The assessee has been assessed in the status of a Hindu undivided family and in course of such assessment as it was contended on its behalf that the…

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