Inherited property does not become HUF asset merely by relinquishment or joint enjoyment; individual ownership was upheld.

Property inherited on intestate succession under section 8 of the Hindu Succession Act, 1956, does not automatically acquire HUF character. Where the deceased held the house as self-acquired property, the heirs took it as individual property. The sisters' relinquishment of their shares in favour of the brothers, without proof of blending, conversion, or any clear act impressing the asset with joint family character, was insufficient to create a Hindu Undivided Family asset. Mere joint enjoyment, common deposits, or common management did not establish HUF status. The property therefore remained the individual property of the brothers and was not assessable as HUF property.

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Issues: Whether the house property inherited on the death of the father, after the daughters relinquished their shares in favour of the sons, became HUF property of the two brothers or remained their individual property, and whether any part of the property could be treated as HUF property of Manmohan Kapur and his family.

Analysis: The property was found to have been acquired by the deceased as self-acquired property and not as ancestral property or as property impressed with the character of HUF property during his lifetime. On his death intestate, the property devolved on the heirs under section 8 of the Hindu Succession Act, 1956. The sisters' relinquishment of their shares in favour of the brothers did not convert the property into joint family property. There was no evidence of blending or conversion by the brothers, and mere joint enjoyment, common deposits, or common management did not establish an HUF. The view that the inherited property remained individual property was preferred over the contrary view relied upon by the assessee.

Conclusion: The property did not become HUF property of the two brothers or of Manmohan Kapur and his family; it remained their individual property.

Final Conclusion: The assessments were to proceed on the basis that the disputed property was not assessable as HUF property in the hands of the assessee.

Ratio Decidendi: Property devolving on heirs under section 8 of the Hindu Succession Act, 1956, is not automatically impressed with HUF character, and mere relinquishment by some heirs or joint enjoyment by others does not by itself amount to blending or creation of a Hindu Undivided Family asset.

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