Hindu undivided family under wealth tax law interpreted narrowly; Christian family governed by Hindu property law not covered.

The term "Hindu undivided family" in the Wealth-tax Act was construed in its statutory context as referring to Hindu Mitakshara families, not to every undivided family governed by Hindu law in relation to property. A Christian family that remained subject to Hindu law for succession and property relations therefore could not be assessed as a Hindu undivided family. The scheme of the Act also showed that an individual's coparcenary interest had to be assessed separately. On that footing, the assessee was assessable only as an individual, and only to the extent of his own interest in the property as on the valuation date, not on the whole property.

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Issues: Whether the expression "Hindu undivided family" in the charging provision of the Wealth-tax Act includes a family of Christians who continue to be governed by Hindu law in respect of property, and whether the assessee's property was liable to be assessed as a Hindu undivided family or only as an individual.

Analysis: The earlier decision concerning the family showed that, though the Indian Succession Act did not apply and Hindu law governed succession and property relations, that did not by itself establish that the family was a Hindu undivided family for wealth-tax purposes. The expression "Hindu undivided family" in the charging provision was construed in its statutory setting as referring to Hindu Mitakshara families, not to every undivided family governed by Hindu law as to property. The scheme of the Act, including the separate treatment of individuals and Hindu undivided families and the provisions dealing with an individual's interest in coparcenary property, supported that construction. On that view, the assessee could not claim assessment as a Hindu undivided family. However, the Tribunal's further view that the entire property was assessable in the hands of the assessee as a single individual was not accepted; the assessment had to be confined to the value of the assessee's own interest in the property as on the valuation date.

Conclusion: The assessee was not entitled to be assessed as a Hindu undivided family and was assessable only as an individual, but only to the extent of his interest in the property and not on the whole property returned.

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