Hindu undivided family status for tax purposes can include a father and accepted son, with joint family property treatment.

A Hindu undivided family may be recognised for tax purposes even where the family consists of a father and a son accepted and brought up as a member of the household. A legitimate son born of a marriage under the Special Marriage Act, 1954, is not excluded from Hindu family status merely because succession to the father's property is governed by that Act. Where the personal law and relevant statutes permit that status, property held by the father can be treated as joint family property and assessed accordingly, rather than in the status of an individual.

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Issues: Whether the assessee and his son constituted a Hindu undivided family for the purposes of assessment under the Income-tax, Wealth-tax and Expenditure-tax Acts, and whether the property in the assessee's hands could be treated as joint family property.

Analysis: A Hindu joint family may exist even with a single male member and can include wives, widows and lineal descendants. A legitimate son born of a marriage solemnised under the Special Marriage Act, 1954, is not excluded from being treated as a Hindu merely because succession to his father's property is regulated by that Act. The relevant Hindu enactments also recognise a child brought up as a member of the family as a Hindu. On the facts, the son was accepted and brought up by the assessee as a member of the family, and the statutory scheme did not prevent the assessee from constituting a Hindu undivided family with him. Once that status was accepted, the property held by the assessee could be impressed with the character of joint family property for tax purposes.

Conclusion: The assessee and his son constituted a Hindu undivided family, and the assessment could not be sustained in the status of an individual.

Final Conclusion: The reference was answered in favour of the assessee, with the revenue's contrary assessment status rejected.

Ratio Decidendi: For tax purposes, a Hindu undivided family is determined by the governing personal law as modified by relevant statutes, and a legitimate son accepted and brought up as a member of the family may constitute, with his father, a Hindu undivided family whose property is assessable as joint family property.

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