Inherited property under Hindu Succession Act does not become HUF property merely because a son receives it by succession.

Property inherited by a son under section 8 of the Hindu Succession Act, 1956 does not automatically become Hindu undivided family property for income-tax purposes, because section 4(1)(a) overrides inconsistent pre-existing Hindu law. The inherited property is taken as individual property, not as joint family property held by the son as karta, and it does not create a birthright in male issue by mere succession. Earlier contrary authorities were not accepted in view of the later Supreme Court exposition, and the Tribunal's treatment of the deceased's separate property as HUF property was therefore unsustainable.

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Issues: Whether the separate property inherited by the sons and grandsons of the deceased could be treated as Hindu undivided family property for income-tax purposes.

Analysis: The applicable rule of succession was governed by section 8 of the Hindu Succession Act, 1956, read with section 4(1)(a) of that Act, which overrides the pre-existing Hindu law to the extent of inconsistency. Property devolving under section 8 does not acquire the character of joint family property merely because it is inherited by a son; the son does not take it as karta of his own undivided family so as to confer a birthright on his male issue. The authorities favouring the contrary view were not accepted in light of the later authoritative exposition of the Supreme Court.

Conclusion: The Tribunal was not justified in holding that the deceased's separate property constituted Hindu undivided family property in the hands of his sons and grandsons.

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