Coparcenary property devolves by survivorship to the smaller HUF, so no section 20 Wealth-tax order was required.

On the death of a coparcener, his interest in the coparcenary property devolved by survivorship on the surviving coparceners, so the property became that of the smaller HUF. In that position, the question of partition and the need for an order under section 20 of the Wealth-tax Act, 1957, did not arise. The Tribunal applied section 6 of the Hindu Succession Act, 1956, to hold that the devolution was by survivorship rather than by partition, and the answer was against the assessee.

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Issues: Whether, on the death of a coparcener, his interest in the coparcenary property devolved by survivorship on the surviving members of the smaller Hindu undivided family without an order under section 20 of the Wealth-tax Act, 1957.

Analysis: The assessee was an HUF assessed under the Wealth-tax Act, 1957. After the death of a coparcener in the bigger family, the surviving coparceners constituted the assessee-HUF. The Tribunal proceeded on the basis that, by virtue of section 6 of the Hindu Succession Act, 1956, the deceased coparcener's interest devolved by survivorship upon the surviving coparceners. Once that devolution took place, the property became that of the assessee-HUF. In that situation, the question of partition and the need for an order under section 20 of the Wealth-tax Act, 1957, did not arise.

Conclusion: The devolution was by survivorship to the smaller HUF, and no order under section 20 of the Wealth-tax Act, 1957, was required. The answer was against the assessee.

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