Partitioned Hindu undivided family remains assessable as a deemed entity; notice to the karta is sufficient under tax law.

After a partition is recognised under section 25A of the Income-tax Act, 1922, the former Hindu undivided family remains assessable as a deemed entity for computing its total income as if no partition had taken place. On that construction, notice to the karta of the erstwhile family is sufficient to initiate assessment proceedings, and separate notice to each divided member is not required. The resulting tax liability may then be enforced against the separated members in accordance with the statutory scheme, including joint and several liability under the proviso.

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Issues: Whether, after an order under section 25A of the Income-tax Act, 1922 recording partition of a Hindu undivided family, assessment of the family's total income could validly be initiated and completed by notice to the karta and sustained against the former joint family for the relevant years.

Analysis: Section 25A(1) contemplates that assessment proceedings under section 23 may already be pending when partition is claimed, and the statutory scheme under section 25A(2) requires the Income-tax Officer to assess the total income of the joint family as if no partition had taken place. The family is treated as a deemed entity for the purpose of such assessment, and the proviso makes the divided members jointly and severally liable for the tax. On that construction, it is not necessary that the assessment proceedings be commenced by separate notice to each erstwhile member; notice to the karta of the former Hindu undivided family is sufficient. The later demand on the separated members under section 29 is consistent with this scheme. The reasoning is reinforced by the Supreme Court and Madras High Court authorities relied upon, which accepted the validity of assessment proceedings initiated against the erstwhile karta after partition.

Conclusion: The assessment proceedings were validly initiated and the assessments made on the Hindu undivided family under section 25A(2) were sustainable; the answer to the referred question is in favour of the Revenue.

Ratio Decidendi: After a partition is recognised under section 25A of the Income-tax Act, 1922, the former Hindu undivided family is still assessable as a deemed entity for the purpose of computing its total income as if no partition had taken place, and notice to the karta of the erstwhile family is sufficient to initiate valid assessment proceedings.

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