1992 (11) TMI 74 - HC - Income Tax

Court upholds validity of Hindu undivided family partition, supports female heirs' rights

The court ruled in favor of the assessee, upholding the validity of the partition in a Hindu undivided family consisting of a son and mother for the ... HUF, Partition Issues:Validity of partition in a Hindu undivided family consisting of a son and mother only for the purpose of section 171 of the Income-tax Act, 1961.Detailed Analysis:The case involved a dispute regarding the validity of a partition in a Hindu undivided family comprising a son and his mother for the assessment year 1979-80. The Income-tax Officer initially rejected the claim of partition made by the assessee on the grounds that the mother, being a female member, was not a coparcener, and hence, the partition was not valid under section 171 of the Income-tax Act, 1961. However, the Appellate Assistant Commissioner and subsequently the Tribunal ruled in favor of the assessee, upholding the validity of the partition and directing the Income-tax Officer to pass consequential orders.The legal dispute centered around the interpretation of section 171 of the Income-tax Act, 1961, which deals with the continuity of a Hindu undivided family for taxation purposes unless a partition is established. The section mandates an inquiry by the Assessing Officer into any claim of partition made by the family members. In this case, the Assessing Officer had to determine whether there was a total or partial partition of the joint family property and the date on which it occurred, as per the provisions of the Act.The argument presented by the Revenue was based on precedents from various High Courts, contending that in a Hindu undivided family with only one male member, the female member cannot claim partition. On the other hand, the assessee relied on decisions from different High Courts supporting the right of the female member to claim a share in the partitioned property. The court delved into the concept of coparcenary under Mitakshara law and the modifications introduced by statutes like the Hindu Succession Act, 1956, which allow female heirs to inherit coparcenary property.The court analyzed the succession rules under the Hindu Succession Act, emphasizing that on the death of a coparcener, the interest in coparcenary property devolves by succession to the heirs as per the Act, and not by survivorship as per traditional Mitakshara law. It clarified that the heirs take the deceased coparcener's share as tenants-in-common, maintaining the joint tenancy of the remaining coparceners. The court rejected the argument that a partition cannot be claimed in a joint family with only male and female members, highlighting the impact of the Hindu Succession Act on the traditional principles of Mitakshara law.In conclusion, the court held that the partition claimed by the assessee in the Hindu undivided family comprising a son and mother was valid, overturning the Revenue's contention. The judgment emphasized the applicability of the Hindu Succession Act in modifying the traditional rules of coparcenary and inheritance, allowing female heirs to claim a share in the partitioned property. The court answered the referred question in favor of the assessee and against the Revenue, affirming the validity of the partition in the given circumstances.