Inherited property under Hindu succession law is taxable in the son's individual hands, not as HUF income.

Property devolving on a son under section 8 of the Hindu Succession Act, 1956 is received in his individual capacity and is not automatically impressed with the character of Hindu undivided family property. Following Supreme Court principle, the Delhi High Court noted that income from such inherited property is assessable in the son's hands as an individual, not as karta of his HUF. The earlier view treating such income as HUF income was rejected as incorrect.

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Issues: Whether property inherited by the assessee on the death of his father was assessable in the hands of the Hindu undivided family or in his individual capacity.

Analysis: The dispute turned on the effect of section 8 of the Hindu Succession Act, 1956, on property devolving on a son from his father. The Court followed the principle laid down by the Supreme Court that, after such devolution, the son takes the property in his individual capacity and not as karta of his own Hindu undivided family. The earlier view treating such income as HUF income was held to be incorrect.

Conclusion: The property and the income arising from it were taxable in the hands of the assessee as an individual, not as a Hindu undivided family.

Ratio Decidendi: Property devolving on a son under section 8 of the Hindu Succession Act, 1956 is received by him in his individual capacity and is not automatically impressed with the character of Hindu undivided family property.

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