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Issues: Whether the wife's allotment of one-fourth share on partition of the Hindu joint family property was a valid provision in lieu of maintenance, and whether the Commissioner was justified in revising the assessments under section 263 of the Income-tax Act, 1961.
Analysis: Under the southern school of Mitakshara law, the wife was not entitled to a coparcenary share at partition, but she could be provided for maintenance. The allotment made to the wife was treated as a family arrangement and as provision in lieu of maintenance, and it was not shown to be excessive, being equal to the share given to her son. Since the Income-tax Officer had accepted the partition and assessed the capital gain on that basis, the assessment could not be said to be erroneous and prejudicial to the interests of revenue. The precondition for invoking revisionary power under section 263 was therefore absent.
Conclusion: The wife's share was validly treated as maintenance, and the Commissioner's revision under section 263 was unjustified.
Final Conclusion: The assessments were restored in substance by accepting the partition as acted upon, and the revisionary orders were annulled in favour of the assessees.
Ratio Decidendi: A share allotted to a Hindu wife on partition may be treated as provision for maintenance, and where the original assessment is based on that legally supportable treatment, revision under section 263 cannot be sustained unless the assessment is both erroneous and prejudicial to the interests of revenue.
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