Individual assessment justified after partition where business was carried on separately from the Hindu undivided family.

Where partition of the family is found and the assessee thereafter holds property and carries on business in an individual capacity, assessment in the status of an individual is justified. The general principle that a Hindu undivided family may consist of a single male member with wife and daughters did not assist the assessee on these facts, because the record showed an actual partition followed by individual ownership and business. The assessee was therefore rightly assessed as an individual, and the reference was answered against him.

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Issues: Whether, on the facts and in the circumstances of the case, the assessee was rightly assessed in the status of an individual for the assessment year 1975-76.

Analysis: The assessee had filed the return in the status of a Hindu undivided family, but the record showed that partition had taken place among the assessee, his wife and sons, and that thereafter the assessee carried on business in his individual capacity. The principle that a Hindu undivided family may consist of a single male member with wife and daughter did not assist the assessee, because the finding in this case was of an actual partition followed by individual holding of property.

Conclusion: The assessee was rightly assessed in the status of an individual, and the question referred was answered in the affirmative against the assessee.

Ratio Decidendi: Where partition of the family has been found and the assessee thereafter holds and carries on business in an individual capacity, assessment in the status of an individual is justified notwithstanding the general principle that an HUF may consist of a single male member with female members.

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