Karta's unauthorised gift of family property is voidable, not void, and related income is not taxable in the HUF's hands.

Alienation of joint Hindu family property by a karta without legal necessity or benefit of the estate is voidable, not void ab initio. The transfer therefore remains capable of being avoided, rather than treated as a nullity. On that basis, once the property stood transferred, the income arising from it could not be assessed as the income of the Hindu undivided family.

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Issues: Whether a gift of immovable property made by the karta of a Hindu undivided family without legal necessity or benefit of the estate was void or only voidable, and whether the income from such property was assessable in the hands of the Hindu undivided family.

Analysis: Alienation by the manager or karta of a joint Hindu family, even if made without legal necessity, is not void ab initio but only voidable. Where the karta transfers family property, the validity of the transfer depends on legal necessity or benefit of the estate, and in the absence of such justification the transfer remains capable of being avoided rather than treated as a nullity. On that footing, the transferred property could not continue to be treated as property of the Hindu undivided family for the purpose of assessing the income arising from it.

Conclusion: The gift was not void, but only voidable, and the income from the transferred property was not assessable in the hands of the Hindu undivided family.

Ratio Decidendi: An alienation of joint Hindu family property by the karta without legal necessity or benefit of the estate is voidable and not void, and income from property validly transferred on that basis cannot be assessed in the hands of the Hindu undivided family.

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