Post-1978 partial partition of HUF property is not recognised when the statutory bar under income-tax law applies.

Section 171(9) of the Income-tax Act bars recognition of any partial partition of HUF property taking place after 31 December 1978. The statutory Explanation requires partition by physical division where property admits of it, or by division as the property admits where it does not, and the inability to divide some assets does not validate a post-1978 partial partition. On the facts discussed, the assessee had not effected a complete partition of all HUF properties, so the plea of legal or physical impracticability was rejected and the partial partition claim remained unrecognised for income-tax purposes.

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Issues: Whether a partial partition of HUF properties made after 31 December 1978 could be recognised under section 171(9) of the Income-tax Act, 1961, where only some properties were partitioned and the remaining properties were kept joint on the ground that they were allegedly incapable of physical or legal division.

Analysis: Section 171(9) expressly provides that no partial partition taking place after 31 December 1978 can be inquired into or recognised, and the Explanation makes clear that partition requires a physical division where the property admits of such division, or such division as the property admits of where it does not. The Court found that the properties retained joint did not justify exclusion from the partition on the facts presented, since the assessee had not effected a complete partition of all the HUF properties. The contention based on alleged legal or physical impracticability was rejected, as the statutory bar in section 171(9) prevented recognition of a post-31 December 1978 partial partition.

Conclusion: The claim of partial partition was not entitled to recognition, and the rejection of the partition claim was upheld.

Ratio Decidendi: After 31 December 1978, a partial partition of HUF property cannot be recognised for income-tax purposes under section 171(9); recognition is available only for a complete partition as understood by the statute.

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