Law:

Section:

Section 4, read with section 171 of the Income-tax Act, 1961 - Hindu undivided family - Assessable as - Assessment year 1965-66 - Whether a single individual cannot constitute a family - Held, yes - Whether continuity of assessment in a family would come to end by disappearance of family and not necessarily by an order under section 171 - Held, yes - Whether where after partition HUF consisted only of Karta and his wife and death of karta reduced family to single individual, family could be said to be disappeared and, therefore, section 171(1) had no application and assessment could not be made as in status of HUF - Held, yes FACTS One 'S', his two wives, and their four sons constituted a HUF of which 'S' was the karta. He was being assessed in the status of a HUF. There was partition in the family on 19-4-1951, by a partition deed, with the results that all the properties were divided between 'S' and his four sons and there was also a provision that the properties allotted to 'S' would devolve, on his death, on his two wives, to be enjoyed by them for their lives and thereafter on the four sons absolutely. 'S' died on 27-1-1967. The assessment for the relevant assessment year was made on 21-3-1970. The ITO took the income from the properties allotted to 'S' as assessable in the hands of a HUF. He had given notices to the surviving widow and also to the four sons after the death of 'S', the other widow of 'S' had died earlier. The ITO referred to the widow as well as the sons as the legal heirs of 'S'. On appeal, the AAC held that the ITO should have made the assessment on widow as representing the joint family and inclusion of his four sons as legal heirs was not proper. He, therefore, restricted the liability to tax on widow and deleted the liability of the heirs. The Tribunal agreed with the view of the AAC. On reference, it was contended by the assessee that after the death 'S' and one of his wives, the family ceased to exist and, therefore, there could be no assessment on the income as there was no machinery for that purpose. On the other hand, it was contended on behalf of department that the joint family continued to exist until an order under section…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492