Valid partition requirement keeps firm share income taxable in the Hindu undivided family assessment.

In the absence of an operative partition order under the Income-tax Act, the Hindu undivided family continued to be assessable as such for the relevant year. Because the order cancelling recognition of partition had already been set aside, there was no valid partition in force, and the firm's share income could not be diverted to the karta individually on the basis of the alleged partition. Inclusion of that share income in the Hindu undivided family's assessment was therefore correct. The contention relating to amounts said to have been provided for the daughters was not examined, as those amounts were not part of the assessments under challenge.

---

---

Issues: Whether, in the absence of a valid partition order under the Income-tax Act, the share income from the firm was assessable in the hands of the Hindu undivided family.

Analysis: The order cancelling the recognition of partition had already been set aside, with the result that there was no operative order recognising partition for the relevant assessment year. On that footing, the Hindu undivided family continued to exist as such. The business interest which, under the alleged partition, would have fallen to the karta could not take the share income out of the family assessment, and the inclusion of that income in the hands of the Hindu undivided family was held to be correct. Any contention relating to amounts said to be provided for the daughters was not decided, as those amounts were not included in the assessments under appeal.

Conclusion: The share income was rightly assessed in the hands of the Hindu undivided family, and the assessee's challenge failed.

---