Partitioned Property in Hindu Undivided Family: Court Rules in Favor of Assessee

The court held that the property received by the assessee on partition should be considered as belonging to the Hindu undivided family comprising the assessee, his wife, and minor daughters, rather than solely to the assessee as an individual. The court ruled in favor of the assessee, answering the issue in the affirmative. The assessee was granted costs from the Commissioner of Income-tax, U. P., totaling Rs. 200, inclusive of the special counsel's fee for the Commissioner.

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Issues:
1. Whether the assessee, who has no male issue, constitutes a Hindu undivided family with his wife and unmarried daughters in respect of the income from property which has fallen to his share on partitionRs.

Analysis:
The case involved the assessment year 1958-59, where the assessee, son of Shri Manmohan Das Tandon, was assessed as an individual. The dispute arose regarding the treatment of income derived from property received upon partition. The Appellate Tribunal allowed the appeal, excluding the income from the property allotted upon partition from the individual's assessment. The Commissioner of Income-tax challenged this decision, arguing that the income from property received upon partition should be considered the assessee's separate income.

The court referred to various legal precedents to analyze the issue. The Privy Council's decision in Kalyanji Vithaldas v. Commissioner of Income-tax was cited, emphasizing that the mere existence of a wife or daughter does not make ancestral property joint. The court also referred to Attorney-General v Arunachalam Chettiar, Krishnamurthi v. Dhruwaraj, and Arunachala Mudaliar v. Muruganatha Mudaliar to support its analysis. Additionally, the court cited Commissioner of Wealth-tax v. Lt. Col. D.C. Basappa, Gowli Buddanna v. Commissioner of Income-tax, Pannalal Rastogi v. Commissioner of Income-tax, Pratap Narain v. Commissioner of Income-tax, and Gajanand Sutwala v. Commissioner of Income-tax to provide a comprehensive legal framework.

The court ultimately held that the property received by the assessee on partition should be regarded as belonging to the Hindu undivided family consisting of the assessee, his wife, and minor daughters, and not exclusively to the assessee as an individual. The court answered the question in the affirmative, ruling in favor of the assessee. The assessee was awarded costs from the Commissioner of Income-tax, U. P., with the costs assessed at Rs. 200, including the fee of the special counsel for the Commissioner.

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