Law:

Section:

Section 171 of the Income-tax Act, 1961 - Hindu Undivided Family - Assessment after partition - Assessment years 1975-76 and 1976-77 - Assessee inherited property under will - In view of fact that assessee was physically incapacitated, testator made stipulation that properties of assessee should be managed by his brothers - From 1950-51 upto 1974-75, income received by assessee from properties was being assessed in status of individual - In course of assessment proceedings for relevant assessment years, it was claimed that properties assessable really belonged to HUF of assessee as there was a partition of joint family dated 4-11-1974 - ITO rejected assessee's claim - AAC and Tribunal upheld order of ITO - On instant reference, it was seen that as per conditions imposed in will executed by father of assessee it was intended that property should be bequeathed to assessee in his individual capacity and not to his branch of family - Moreover, property in question was never treated as that of HUF and, in view of assessee's mental condition, blending by him was impossible - Whether in aforesaid circumstances, assessee was rightly held to be assessable in status of 'individual' - Held, yes FACTS KR executed a will in 1948 allotting his movable and immovable properties equally to his five sons. At the time of the execution of the will one of his sons namely 'N' was physically incapacitated due to an accident. The applicant was his wife and he had no children at that time. The testator made a stipulation that the properties of 'N' should be maintained by his three brothers and they should not be sold. 'N' also filed return from 1950-51 onwards up to 1974-75 in the status of individual. The income received from the properties was being assessed in that status only. The returns were being filed by the applicant as the legal guardian of her husband. In the course of the assessment proceedings for the years 1975-76 and 1976-77, it was claimed that the properties assessable really belonged to the HUF of 'N' consisting of himself, his wife and two sons, as there was a partition of the joint family dated 4-11-1974. The ITO as well as the WTO did not accept said claim and they…

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