Assessment of a Hindu undivided family remains valid for income earned while the family was still joint despite later partition recognition

Section 25A of the Indian Income-tax Act, 1922 permits assessment of a Hindu undivided family's income as if no partition had taken place, even where partition is later recognised under the Act. Recognition of partition does not invalidate an assessment already made, nor does it prevent assessment of income that accrued while the family remained joint. Accordingly, an assessment made in the name of the erstwhile Hindu undivided family for income arising during the period of joint status remains valid despite a subsequent recognised partition.

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Issues: Whether an assessment made in the name of a Hindu undivided family is invalid because the family had been partitioned before the assessment order, though the partition was recognised later under the Act.

Analysis: Section 25A of the Indian Income-tax Act, 1922 contemplates assessment of the income of a joint Hindu family as if no partition had taken place, even after an order recognising partition. The recognition of partition does not nullify assessments already made or prevent assessment of income which arose while the family was joint. The authorities cited supported the position that a partition recognised under section 25A(1) does not bar assessment of the erstwhile undivided family for the relevant income.

Conclusion: The assessment in the name of the Hindu undivided family is valid and the question is answered against the assessee.

Ratio Decidendi: Where income accrued while a Hindu undivided family was still joint, subsequent partition and its recognition under section 25A do not invalidate assessment of the family as such for that income.

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