Hindu Undivided Family status can exist with one male coparcener, and family income remains taxable as HUF income.

For income-tax purposes, a Hindu undivided family is not confined to a narrow coparcenary with multiple male members. The concept may include a sole surviving male coparcener along with widowed mother and sisters where family property and family income continue to exist. On that basis, income arising from such property is assessable in the hands of the Hindu undivided family itself, because the family remains the taxable unit under the Act. The stated result is that the HUF status and the corresponding assessment were upheld.

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Issues: (i) Whether a sole male surviving coparcener, his widowed mother and sisters constitute a Hindu undivided family under the Income-tax Act; (ii) whether the assessment of the income in the hands of the Hindu undivided family was correct.

Issue (i): Whether a sole male surviving coparcener, his widowed mother and sisters constitute a Hindu undivided family under the Income-tax Act

Analysis: The expression "Hindu undivided family" is not confined to a Hindu coparcenery in the narrow sense. It is a wider concept under Hindu law and may include female members entitled to maintenance. The absence of more than one male coparcener does not, by itself, prevent the existence of a Hindu undivided family where family property and family income continue to exist.

Conclusion: Yes. The sole male surviving coparcener, together with his widowed mother and sisters, constituted a Hindu undivided family within the meaning of the Act.

Issue (ii): Whether the assessment of the income in the hands of the Hindu undivided family was correct

Analysis: Once the existence of a Hindu undivided family is established and the income arises from property belonging to that family, the income is assessable in the hands of the family itself. The rights of the members inter se are governed by Hindu law, but for income-tax purposes the family remains the taxable unit for such income.

Conclusion: Yes. The assessment of the income in the hands of the Hindu undivided family was correct.

Final Conclusion: The reference was answered against the assessee and in favour of the revenue, and the disputed status and assessment were upheld.

Ratio Decidendi: For income-tax purposes, a Hindu undivided family may exist even with a sole surviving male coparcener, if the family relationship and joint family property continue; income from such property is assessable as the income of the family.

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