Inherited property under Hindu succession law retains separate character in the heir's hands, not HUF property.

Property devolving on an heir under section 8 of the Hindu Succession Act, 1956 takes the character of separate property in the heir's hands, not Hindu undivided family property. The father's interest in the partnership firm was held to have been held by him in his individual capacity and not as coparcenary property; on his death, it devolved on the assessee under section 8 rather than under section 6(1). The earlier view in Chander Sen was applied and treated as affirmed by the Supreme Court, so the inherited interest was the assessee's individual property.

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Issues: Whether the property inherited by the assessee from his father under section 8 of the Hindu Succession Act, 1956 was his individual property or property of the Hindu undivided family.

Analysis: The deceased father's interest in the partnership firm was held in his individual capacity and was not coparcenary property. On his death, that interest devolved on the assessee under section 8 of the Hindu Succession Act, 1956 and not under the main limb of section 6(1). Property so devolved takes the character of separate property in the hands of the heir. The earlier view in Chander Sen was applied and treated as affirmed by the Supreme Court.

Conclusion: The inherited interest was the assessee's separate property and not Hindu undivided family property.

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