Law:

Section:

Section 16 of the Wealth-tax Act, 1957 - Assessment - Validity of - Assessment years 1977-78 and 1978-79 - Whether there is no provision in Act to make assessment on erstwhile HUF, consisting of karta and his minor son, which ceased to exist after filing of return because of death of karta after filing of return - Held, yes Section 20 of the Wealth-tax Act, 1957 - Hindu undivided family - Assessment after partition - Assessment years 1977-78 and 1978-79 - Whether on facts stated under heading 'Assessment - Validity of, assessment could be made on HUF under section 20 - Held, no Section 19 of the Wealth-tax Act, 1957 - Legal representative - Whether on facts stated under heading 'Assessment - Validity of assessment on HUF could be made under section 19 - Held, no FACTS For the assessment years 1977-78 and 1978-79 wealth-tax returns were filed by one N on 25-8-1977 and 12-9-1978 as karta of his HUF. The HUF consisted of himself and his minor son. On 26-6-1982 N died. Thereafter assessment orders were made on 14-2-1983 and 28-3-1983 respectively in respect of the two assessment years, assessing the HUF. Consequent on the death of N, the HUF ceased to exist because only his minor son was left behind by him who was earlier a member of the HUF. Therefore, it was1 contended that on the extinction of the HUF there was no HUF on which assessment order could have been made and that there is no provision in the Act providing for such a contingency to make an order of assessment in respect of a return filed earlier by the then existing HUF which ceased to exist by the time the assessment order was made. The Tribunal accepted this contention. On reference: HELD The existence of the assessee at the time of assessment order is an absolute necessity and if the assessee is not in existence, there should be a specific provision to assess the said income which was liable to be taxed under the provisions of the Income-tax Act, 1961. The same logic governs the Wealth-tax Act also. A HUF is an assessable entity; without the presence of the assessee, it is not possible to make an order of assessment, unless the law provides a machinery to assess the erstwhile HUF, by enabling the…

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