Law:

Section:

Section 20 of the Wealth-tax Act, 1957 -Hindu undivided family - Assessment after partition - Assessment years 1968-69 to 1975-76 - After death of assessee's father, HUF consisting of assessee and his two brothers possessed certain properties - assessee and his two brothers divided themselves in status due to avocation and placement in different places in country and, accordingly, HUF consisting of three brothers stood dissolved on 9-9-1943 - Accordingly, all three brothers partitioned properties which were in occupation of tenants - Subsequently, when assessee got possession of said properties, brothers felt that since outright sale was not possible and it was profitable to sell properties and divide sale proceeds, they sold properties accordingly and at instance of purchaser executed deed of sale jointly as co-owners of properties - Thereafter, WTO issued notice and made assessment treating assessee as karta of HUF on view that HUF continued and, therefore, it should be assessed as HUF - Whether, on facts and in circumstances of case, Tribunal was justified in law and had valid materials to hold that assessment made on HUF consisting of three brothers was not tenable and, therefore, was to be annulled - Held, yes FACTS After the death of the assessee's father, HUF consisting of the assessee and his two brothers, possessed two properties; one at Coimbatore and another at Ooty. Both the properties were let out to tenants who were in occupation of properties. While the tenant of the Coimbatore's property was paying rent, the Ooty property was in hostile occupation of a tenant. Since the three brothers found it difficult to maintain the joint family properties due to their avocation and placement in different places in the country,. they exchanged letters on 9-9-1943 among themselves declaring that they were divided in status from the said date and that the joint family consisting of the three brothers stood dissolved. The letters of three brothers were attested and, accordingly, partition was effected. Subsequently, when the assessee did get possession of the said properties, they felt that outright partition was not possible and it was profitable to sell…

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