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Issues: Whether, in the absence of a claim and finding under section 171 of the Income-tax Act, 1961, the income from the Hindu undivided family property and business could be split so that 50% was assessed in the hands of the family and 50% in the hands of an individual on the theory of notional partition and succession to the widow's share.
Analysis: The widow's pre-existing interest in coparcenary property was examined in the light of the Hindu Succession Act, 1956 and the doctrine of notional partition. Even assuming that her interest had enlarged into an absolute estate and that succession to her share could be traced separately, the income-tax assessment machinery depended on section 171 of the Income-tax Act, 1961. Under that provision, a Hindu undivided family continues to be treated as undivided unless and until a claim of partition is made and a finding of partition is recorded by the Assessing Officer. In the absence of such a claim or finding, the family retains its tax identity and the income from the property continues to be assessable as Hindu undivided family income.
Conclusion: The assessee's contention was rejected and the assessment of the entire income in the hands of the Hindu undivided family was upheld.
Ratio Decidendi: For income-tax purposes, a Hindu undivided family remains assessable as such until a partition is claimed and found under section 171 of the Income-tax Act, 1961, and a notional or statutory partition under personal law does not by itself alter that tax position.
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