Tax liability of Hindu Undivided Family is enforceable against joint family property; injunction against recovery refused.

Where assessment made on a Hindu Undivided Family (HUF) is final, joint family property may be subjected to recovery for statutory income tax arrears; the HUF is treated as an assessee in its own right and absence of partition after assessment does not prevent attachment. Arrears assessed on the HUF, including assessments based on estimated income or speculative profits, do not qualify as avyavaharika debts under Hindu law and thus remain binding on family members. The appellant's declaration and injunctive relief against recovery were refused.

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Issues: (i) Whether property held to be joint family property can be proceeded against for recovery of income-tax arrears where the assessment on the Hindu undivided family has become final; (ii) Whether arrears of income-tax arising from an assessment (including an assessment based on estimated income or profits from speculative business) constitute an "avyavaharika" debt under Hindu law so as to be not binding on members of the family.

Issue (i): Whether joint family property may be subjected to recovery proceedings for income-tax arrears when the assessment against the Hindu undivided family is final.

Analysis: The Court proceeded on the admitted factual premises that the suit property was joint family property, that the assessment for the relevant year was made on the Hindu undivided family (not on the father individually), and that the assessment had attained finality. Having regard to the statutory scheme and the position of a Hindu undivided family as an assessee in its own right, the Court considered whether these facts precluded recovery from the joint family property. The Court also noted section 25A (as in force at the relevant time) and the absence of any claim of partition subsequent to assessment.

Conclusion: The joint family property is liable to be proceeded against for recovery of the income-tax arrears of the Hindu undivided family where the assessment against the family is final. The appellant was not entitled to injunctive relief preventing recovery from the property.

Issue (ii): Whether income-tax arrears in the circumstances amount to an "avyavaharika" debt under Hindu law and therefore are not binding on family members.

Analysis: The Court examined the principle of avyavaharika debt as limited to personal obligations of a father recoverable from a son by reason of pious obligation and contrasted that with a liability imposed on the Hindu undivided family as an assessee. The Court relied on prior decisions of this Court and of the Andhra Pradesh High Court (which followed this Court and the Supreme Court) holding that statutory tax liabilities, even if assessed on estimated income or involving speculative business profits, do not constitute avyavaharika debts. The Court rejected the contention that estimation or speculative character of income rendered the tax liability avyavaharika.

Conclusion: Arrears of income-tax assessed on the Hindu undivided family do not amount to an avyavaharika debt under Hindu law; therefore the liability is binding on the family and recoverable from joint family property.

Final Conclusion: The appellant's claim for a declaration and injunctive relief was rejected; the tax recovery proceedings against the joint family property could continue and the appeal was dismissed.

Ratio Decidendi: Where an assessment made on a Hindu undivided family is final, the family property is liable for recovery of the assessed tax and statutory income-tax arrears do not constitute an avyavaharika debt exempting family members from liability.

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