Inherited property under Hindu Succession law retains its character in the heir's hands and is not automatically HUF property.

Property inherited by a male Hindu heir after the Hindu Succession Act, 1956 does not automatically become joint family property merely because it devolves under section 8. Section 8 regulates succession on intestacy, while section 4 abrogates Mitakshara law only to the extent of inconsistency; where the Act is silent, pre-existing personal law continues to apply. On that basis, the inherited property retained its character in the heir's hands and was assessable as individual property, not as HUF property for wealth-tax purposes.

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Issues: Whether property inherited by a male Hindu heir after the coming into force of the Hindu Succession Act, 1956 was to be treated in his hands as individual property or as property of a Hindu undivided family for wealth-tax purposes.

Analysis: The controlling provisions were sections 4, 6 and 8 of the Hindu Succession Act, 1956. Section 8 governs the devolution of property of a Hindu male dying intestate, but it does not by itself determine the character of the property in the hands of the heir after inheritance. Section 4 abrogates Mitakshara law only to the extent of inconsistency with the Act, and where the Act is silent the pre-existing Mitakshara principles continue to apply. The binding Punjab and Haryana High Court view held that the statutory scheme only changes the order of succession and does not convert the inherited property into joint family property in the hands of the heir.

Conclusion: The inherited property was to be assessed in the hands of the heir as individual property and not as HUF property; the revenue's challenge failed.

Ratio Decidendi: Section 8 of the Hindu Succession Act, 1956 regulates succession to the estate of a Hindu male dying intestate, but absent an express statutory provision altering the character of the property in the hands of the heir, the inherited property retains the character it bears under the applicable personal law.

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