Individual taxation of partnership share income upheld where inherited self-acquired property was not validly blended into HUF property.

Share income from a partnership firm was treated as taxable in the assessee's individual capacity because the deceased husband's self-acquired property devolved under section 8 of the Hindu Succession Act, 1956, on the heirs individually and not as Hindu undivided family property. A declaration by the assessee describing herself as partner on behalf of the family did not change the legal character of the property or establish valid blending into the family estate. The principles of blending were therefore inapplicable, and the income remained assessable as individual income rather than HUF income.

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Issues: Whether the share income arising from the partnership firm was assessable in the hands of the assessee in her individual capacity or in the status of a Hindu undivided family.

Analysis: On the death of the assessee's husband, his self-acquired property devolved under section 8 of the Hindu Succession Act, 1956, upon his heirs in their individual capacity and not as Hindu undivided family property. The declaration by the assessee describing herself as partner on behalf of the family did not alter the legal character of the devolution, nor did it show a valid blending of separate property into the family estate. The principles governing blending did not assist the assessee, as the declaration was only an assertion of status and not a legally effective conversion of individual property into joint family property.

Conclusion: The share income was assessable in the assessee's individual capacity and not as income of a Hindu undivided family.

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