HUF property classification under valid wills depends on prior partition and absolute ownership, not family status alone

Property received under valid wills after probate and estate distribution was treated as the testators' absolute property, and the prior partition had already severed joint family status. On those facts, the assets did not retain Hindu undivided family character in the hands of the sons merely because they belonged to a family line. The result was that the properties were assessable in the assessees' individual wealth-tax assessments, not as HUF assets. Authorities suggesting a different treatment were distinguished on their facts.

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Issues: Whether the assets received by the assessees from their parents under the wills were assessable to wealth-tax in their individual hands or as property of their respective Hindu undivided families.

Analysis: The wills were accepted as valid and had been acted upon after probate and distribution of the estates. The documents showed an unequivocal declaration by the testators that each had become absolute owner of the property received on partition and intended to deal with that property as his or her own. The earlier partition of the family properties had severed joint status and divided the properties into distinct shares. On the facts and conduct of the parties, the properties received under the wills did not retain the character of HUF property in the hands of the two sons. The authorities relied upon for the contrary proposition were distinguished on facts.

Conclusion: The assets were assessable in the individual assessments of the assessees and not as HUF property.

Ratio Decidendi: Where partition has severed the joint status and the testator has validly bequeathed property as absolute owner, the property received under the will is assessable in the beneficiary's individual capacity and does not automatically acquire the character of HUF property merely because the beneficiary has a family.

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