Heirship income from inherited property is taxable as individual income, not as Hindu undivided family income.

Share income arising from property devolving on heirs under section 8 of the Hindu Succession Act retains the character of individual property in their hands, so the resulting income is assessable as individual income and not in the hands of a Hindu undivided family. The Tribunal's view was supported by binding High Court and Supreme Court precedent, and the alternative argument based on section 168 of the Income-tax Act, 1961 did not require examination. The share income was therefore held not assessable in the assessee-HUF's hands and had to be assessed separately in accordance with law.

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Issues: Whether the share income from the estate of the deceased was assessable in the hands of the assessee-Hindu undivided family or was liable to be assessed separately.

Analysis: The assessment year was 1981-82 and the income in question arose from properties devolving on the heirs of the deceased on succession. The legal position applied was that property devolving under section 8 of the Hindu Succession Act takes the character of individual property in the hands of the heirs, and the income from such property is assessable in the status of an individual and not in the hands of a Hindu undivided family. The conclusion of the Tribunal was supported by binding precedent of the High Court and the Supreme Court, and it was unnecessary to examine the alternative ground relating to section 168 of the Income-tax Act, 1961.

Conclusion: The share income was not assessable in the hands of the assessee-Hindu undivided family and was to be assessed separately in accordance with law.

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