Partial partition under income tax law invalidated the basis of the addition, with the question decided for the assessee.

Acceptance of the partial partition of the larger Hindu undivided family under section 171 of the Income-tax Act, 1961 removed the foundation for the related income addition. Because the earlier decision had already upheld the partial partition with effect from 1 April 1973 and answered the referred question against the Revenue, the addition made solely on that basis could not be sustained. The referred question was answered in favour of the assessee and against the Revenue.

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Issues: Whether the addition of Rs. 29,601 could be sustained after acceptance of the partial partition of the bigger Hindu undivided family under section 171 of the Income-tax Act, 1961.

Analysis: The earlier decision had already upheld the partial partition with effect from 1 April 1973 and answered the referred question against the Revenue. The present addition was made only on the basis of the earlier order under section 171, and once the partial partition stood accepted, the basis for the addition disappeared.

Conclusion: The addition could not be sustained and the referred question was answered in favour of the assessee and against the Revenue.

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