Maintenance charge on family assets remained deductible in computing Hindu undivided family income

Maintenance paid to the karta's wife under a separation agreement, secured by a charge on movable and immovable family properties, was treated as an allowable deduction in computing the Hindu undivided family's taxable income. The charge was created when the karta was the sole owner and competent to encumber the entire estate, and the later birth of sons did not extinguish that liability. As there was nothing to show that the junior members had avoided the charge, and the maintenance obligation had been expressly recognised in the agreement, the charge attached to the family assets and remained deductible.

---

---

Issues: Whether maintenance paid to the wife of the karta under a separation agreement, secured by a charge on movable and immovable properties, was an allowable deduction in computing the taxable income of the Hindu undivided family.

Analysis: The maintenance liability was created when the karta was the sole owner of the property and competent to charge the entire estate. The subsequent birth of sons did not nullify the charge, and there was nothing to show that the junior members had avoided it. The obligation to maintain the lady was a legal liability of the family and had been expressly recognised by the agreement, so the charge attached to the family assets.

Conclusion: The deduction was allowable and the answer to the referred question was in the affirmative.

---