Inherited property under Hindu Succession Act is individual property, not HUF property, for wealth-tax purposes.

Property inherited by a son under section 8 of the Hindu Succession Act, 1956 devolves on him in his individual capacity, not as joint family property. Applying section 4 with the statutory scheme, the Court followed the settled principle that such inheritance does not preserve a birthright claim for the son's son or make the property part of the son's HUF. As a result, the inherited share was treated as the assessee's individual asset and included in his net wealth under the Wealth-tax Act, 1957.

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Issues: Whether property inherited by a son from his father under section 8 of the Hindu Succession Act, 1956, becomes joint family property in the hands of the son and is therefore excluded from his individual net wealth under the Wealth-tax Act, 1957.

Analysis: The question turned on the effect of section 8 of the Hindu Succession Act, 1956, read with section 4 of that Act. The Court followed the principle settled by the Supreme Court that, when property devolves on a son under section 8, he takes it in his individual capacity and not as karta of his own undivided family. The earlier view treating such inherited property as joint family property was not accepted, because the statutory scheme modifies the pre-existing Hindu law and does not preserve a right by birth in favour of the son's son in such property.

Conclusion: The inherited one-seventh share did not belong to the assessee's joint family and was includible in his net wealth as his individual property; the answer was against the assessee and in favour of the Revenue.

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