HUF property character after partition upheld where life interests and remainderman rights vested in the sons.

Property received under a partition deed retained its character as Hindu undivided family property against the male issue, and rights short of full ownership could validly be partitioned. Here, the parents received only life interests, while the remainderman's interest in property No. 59 vested in the two sons and became full ownership on expiry of the limited interest. The assessee therefore acquired the property by partition, not as separate individual property, so the house property income was assessable in the hands of the HUF.

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Issues: Whether the income from property No. 59, Mahathma Gandhi Road, Panruti, was assessable in the hands of the Hindu undivided family or as the individual property of the assessee after the partition arrangement and the demise of the parents.

Analysis: On the partition, the parents were given only life interests in the properties, while the remainderman's interest in property No. 59 vested in the two sons. The limited interest of the parents operated only for the intervening period, and on the expiry of that interest the full rights in the property accrued to the sons in terms of the partition deed. Property received on partition retains the character of joint family property as against the male issue, and rights short of full ownership can also be the subject of partition. The assessee therefore acquired the property by way of partition and not as separate individual property.

Conclusion: The property was held to be HUF property, and the inclusion of the house property income in the assessment of the HUF was upheld against the assessee.

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