Class I heir takes inherited property as absolute individual property, not HUF property, under the Hindu Succession Act.

Property devolving on a son under section 8 of the Hindu Succession Act, 1956 is his absolute property and not Hindu undivided family property in relation to his own sons. The Act overrides contrary Mitakshara incidents, and the statutory scheme of sections 8, 9 and 19 shows that a Class I heir takes in his individual right as tenant-in-common, with no birthright accruing to his male issue. Accordingly, property received by succession under section 8 is assessable in the heir's hands as individual property, and his sons acquire no interest by birth.

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Issues: Whether properties devolving on a son under section 8 of the Hindu Succession Act, 1956 on his father's death are assessable in his hands as his individual property or as Hindu undivided family property.

Analysis: Prior to the Hindu Succession Act, property inherited by a male Hindu from his father ordinarily became ancestral property in his hands vis-a -vis his male issue under Mitakshara law, so that sons acquired an interest by birth. Section 4 of the Hindu Succession Act gives overriding effect to the Act and displaces contrary text, rule, interpretation, custom or usage wherever the Act makes provision. Section 8 provides a specific line of succession for the property of a male Hindu dying intestate, and Class I of the Schedule includes the son but not the son's son. Section 9 requires Class I heirs to take simultaneously and to the exclusion of others, while section 19 directs that co-heirs take as tenants-in-common and not as joint tenants. These provisions show a deliberate departure from the pre-existing Hindu law and indicate that the heir takes the property in his own absolute right, not as HUF property in relation to his sons.

Conclusion: Properties devolving under section 8 on the assessee from his father are assessable as his individual properties, and his sons acquire no right by birth in them.

Final Conclusion: The reference was answered against the assessee and in favour of the Revenue on the character of property received by succession under section 8 of the Hindu Succession Act, 1956.

Ratio Decidendi: Property devolving on a Class I heir under section 8 of the Hindu Succession Act, 1956 is the heir's absolute property and does not retain the character of Hindu undivided family property in the hands of that heir vis-a -vis his own sons.

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