Valid coparcener reunion determines taxability of income from contributed assets in the reunited Hindu undivided family.

A valid reunion of coparceners was treated as effective where the earlier ruling had recognised the reunion and held that the properties brought into the reunited joint family belonged to that family. On that basis, income arising from the contributed deposit could not be assessed in the hands of the separate Hindu undivided family of the assessee. The income was therefore assessable only in the hands of the reunited Hindu undivided family, reflecting the tax consequence of a legally effective reunion.

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Issues: Whether the reunion between the coparceners was valid and effective so that the income arising from the contributed deposit of Rs. 50,000 each could be assessed only in the hands of the reunited Hindu undivided family and not in the hands of the assessee-family.

Analysis: The earlier decision had upheld the validity of the reunion and held that the properties brought into the reunited joint family belonged to that family. Once the reunion was accepted as valid, the income generated from the contribution made to the reunited family could not be taxed in the hands of the separate specified Hindu undivided family of the assessee.

Conclusion: The reunion was held to be valid and effective, and the income from the contribution was held assessable only in the hands of the reunited Hindu undivided family, not in the hands of the assessee-family.

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