Widow's adoption and HUF status: joint Hindu family recognised for wealth-tax purposes despite prior partition and absolute ownership.

After a widow's adoption, the assessee was assessable to wealth-tax as a Hindu undivided family because the adoption deed and the Hindu Adoption and Maintenance Act treated the adoption as relating not only to the widow but also to her deceased husband. The fact that the property had become the widow's absolute estate under the Hindu Succession Act did not make that point decisive for the wealth-tax status. On the facts, the adopted son was placed in the position of a son in the family, and the existence of a joint Hindu family could not be denied merely because the adoption occurred after partition and after the widow became full owner.

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Issues: Whether, after adoption by a widow, the assessee was assessable to wealth-tax as a Hindu undivided family or as an individual.

Analysis: The adoption deed and the governing provisions of the Hindu Adoption and Maintenance Act showed that the adoption by the widow was not confined to her alone but also related to her deceased husband. The property obtained on partition had become the widow's absolute property under the Hindu Succession Act, and the question whether adoption divested that estate was not treated as decisive for the wealth-tax issue. On the facts, the adopted son stood in the position of a son in the family, and the existence of a joint Hindu family could not be denied merely because the adoption occurred after the partition and after the widow had become full owner of the property.

Conclusion: The assessee was liable to be assessed in the status of a Hindu undivided family and not as an individual.

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