Law:

Section:

Section 4 of the Income-tax Act, 1961 [Corresponding to section 3 of the Indian Income-tax Act, 1922] - Hindu undivided Family - Assessable as - Assessment year 1951-52 - Whether property of a joint family does not ceased to belong to family merely because family is represented by a single coparcener who possesses rights which an owner of property may possess - Held, yes - Whether where on death of karta, a Hindu family, which included widow and females, was represented by only one male surviving member, property would still belong to that undivided family and income received therefrom was taxable as income of HUF - Held, yes FACTS One 'B' his wife, his two unmarried daughters and his adopted son 'N' were members of a HUF. In respect of the business dealings of the family, 'B' was assessed during his life time in the status of manager of the HUF. On death of 'B', for the relevant assessment year, the Additional ITO assessed 'N' in respect of the income of HUF. The order of the Add. ITO, was confirmed by both the AAC and the Tribunal. On reference, the High Court also upheld the order of the Addl. ITO. On appeal to the Supreme Court : HELD Under section 3 of the Act of 1922 not a Hindu coparcenary but a HUF is one of the assessable entities. A Hindu joint family consists of all persons lineally descended from a common ancestor, and includes their wives and unmarried daughters. A Hindu coparcenary is a much narrower body than the joint family: it includes only those persons who acquire by birth an interest in the joint or coparcenary property, these being the sons, grandsons and great-grandsons of the holder of the joint property for the time being. Therefore, there may be a joint Hindu family consisting of a single male member and widows of deceased coparceners. The expression "HUF" in the Act was used in the sense in which a Hindu joint family is understood under the personal law of Hindus. Under the Hindu system of law a joint family may consist of a single male member and widows of deceased male members, and apparently the Act does not indicate that a HUF as an assessable entity must consist of at least two male members. Reliance was also placed upon the form…

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