Self-acquired property remains separate unless a will clearly shows ancestral intent; prior tax treatment alone creates no estoppel.

A bequest of a Hindu's self-acquired property is treated as the donee's separate property unless the will or surrounding circumstances clearly show an intention to make it ancestral or a family settlement. Here, the will was found genuine and clause 10 did not restrict the business share in favour of the male issue or the family, so the partnership share income was assessable in the individual's hands. Prior returns describing the income as HUF income did not create estoppel, as they were filed without knowledge of the will's legal effect, and there was no basis to infer that the property had been thrown into the common stock.

---

---

Issues: Whether the share income from the firm belonged to Khimji Teju Kaya in his individual capacity or as representing the Hindu undivided family of which he was karta.

Analysis: The decisive question was the true effect of the testator's will and the surrounding circumstances. The will was held to be genuine, and clause 10 showed that after the testator's death the business share was to be dealt with according to its terms, with no express limitation placing Khimji's interest in the firm in favour of his male issue or the family. The governing principle was that a gift or bequest from self-acquired property becomes ancestral only if the instrument clearly so indicates, and in the absence of such clear words the document must be construed to ascertain whether the donor intended an absolute bounty or a limited family settlement. The prior returns showing HUF status did not create estoppel because the assessee was unaware of the will and its legal effect, and there was likewise no basis to infer that the property had been voluntarily thrown into the common stock.

Conclusion: The share income belonged to Khimji Teju Kaya in his individual capacity and not as representing the Hindu undivided family.

Final Conclusion: The reference was answered in favour of the assessee on the ownership and assessability of the partnership share income.

Ratio Decidendi: A bequest of a Hindu's self-acquired property is treated as the donee's separate property unless the will or surrounding circumstances clearly show an intention to confer it as ancestral or family property, and neither ignorance-based accounting treatment nor mere prior conduct will by itself create estoppel or amount to a waiver of separate rights.

---