Blending of self-acquired property into HUF hotchpot requires HUF assessment once joint family character is recognised.

Property voluntarily thrown into the common hotchpot of a Hindu undivided family acquires the character of joint family property if separate rights are relinquished, and the doctrine of blending applies only where a coparcenary exists and the property is capable of being so impressed. Once partition was recognised under section 171 and the capital was treated as HUF property, the assessee had to be assessed in that status. An earlier individual assessment did not change the true legal character of the property after blending had taken place.

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Issues: Whether the assessee, after throwing property into the common hotchpot and obtaining an order recognizing partition under section 171, was liable to be assessed in the status of an individual or as a Hindu undivided family.

Analysis: The governing principle is that separate or self-acquired property of a coparcener may become joint family property if it is voluntarily thrown into the common hotchpot and the separate rights are relinquished. The doctrine of blending applies only where a coparcenary exists and the property sought to be blended is capable of being impressed with the character of joint family property. On the facts, the assessee's claim of partition had been accepted, the capital was treated as joint family property, and the subsequent assessment had to give effect to that legal character. The court accepted that the earlier individual assessment did not alter the true legal nature of the property once blending had taken place.

Conclusion: The assessee was rightly held assessable in the status of a Hindu undivided family, and not as an individual.

Ratio Decidendi: Property voluntarily blended into the common hotchpot of a Hindu undivided family acquires the character of joint family property, and once such character is recognized, the assessee must be assessed accordingly.

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