Inherited property from a divided father remains separate property of the son, not HUF property, under the Hindu Succession Act.

Property inherited by a son from his divided father is treated as the son's separate and individual property, not as joint family property of the Hindu undivided family. Under the Hindu Succession Act, 1956, where the father had already separated and the property was his separate share, devolution takes place by succession under section 8 rather than by survivorship under section 6. The earlier Mitakshara rule that such inherited property became ancestral in the son's hands is superseded to that extent. As a result, income from those properties is not assessable in the hands of the Hindu undivided family.

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Issues: Whether properties inherited by a son from his divided father constitute the separate and individual properties of the son, or the properties of the Hindu undivided family consisting of the son, his wife, sons and daughters, so that the income from such properties is assessable in the hands of the Hindu undivided family.

Analysis: The governing rule was taken from the Hindu Succession Act, 1956. Where the deceased had already separated from the family and the property was his separate or divided share, devolution was by succession under section 8, not by survivorship under section 6. The earlier Mitakshara rule treating property inherited from the father as ancestral in the hands of the son was held to be superseded to that extent. The decision followed the view that such inherited property does not automatically become joint family property merely because the heir has a family of his own.

Conclusion: The properties inherited by the son from his divided father were his separate and individual properties and not the properties of the Hindu undivided family. The income from those properties was not assessable in the hands of the assessee-Hindu undivided family, and the answer was in favour of the assessee.

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