Inherited self-acquired property under the Hindu Succession Act remains individual property, not HUF property, for tax purposes.

Property inherited by a son from his father's self-acquired estate on intestate succession under section 8 of the Hindu Succession Act, 1956, takes the character of the son's individual property and not Hindu undivided family property. The statutory scheme of intestate succession prevails over pre-existing Hindu law, and heirs in Class I inherit in the manner prescribed by the Act. The earlier contrary view treating such inherited property as joint family property was rejected, with the result that income from the property is assessable in the son's individual hands.

---

---

Issues: Whether income derived from property inherited by a son on the intestate death of his father, being the father's self-acquired property, is assessable in the hands of the Hindu undivided family or in the son's individual status.

Analysis: The property in question was the self-acquired property of the father and was inherited by the son on intestate succession. The governing law was section 8 of the Hindu Succession Act, 1956, which had already been construed by the Supreme Court to mean that property devolving on a male Hindu under that provision does not retain the character of Hindu undivided family property in his hands. The pre-existing Hindu law could not override the express scheme of the Act, which codified and amended the law of intestate succession and made the statutory heirs in Class I take in the manner prescribed by the Act. Accordingly, the earlier contrary view that such property could be treated as family property was rejected.

Conclusion: The income was taxable in the son's individual hands and not as income of the Hindu undivided family.

Ratio Decidendi: Property inherited by a son from his father under section 8 of the Hindu Succession Act, 1956, after intestate succession is the son's individual property and does not become Hindu undivided family property in his hands.

---