Blending of self-acquired property with joint family estate does not require a registered transfer and changes tax character.

A coparcener can impress self-acquired immovable property with the character of coparcenary property by blending it with the joint family estate, and no registered deed of transfer is required for that change in character. Once the property is blended, it loses its separate character and becomes joint family property. On that basis, the properties in question were treated as coparcenary property from 19 November 1955 and were not assessable in the assessee's individual hands.

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Issues: (i) Whether a registered deed of transfer is necessary for blending the separate immovable properties of a coparcener with coparcenary properties. (ii) Whether the assessee's separate properties assumed the character of coparcenary properties from 19 November 1955 and were therefore not assessable in his individual hands.

Issue (i): Whether a registered deed of transfer is necessary for blending the separate immovable properties of a coparcener with coparcenary properties.

Analysis: The legal position applied was that a coparcener may impress his self-acquired property with the character of joint family property by blending it with the family estate. Such merger does not depend on any formal conveyance, and no registered instrument is required to bring about the change in character of the property.

Conclusion: No registered deed of transfer is necessary.

Issue (ii): Whether the assessee's separate properties assumed the character of coparcenary properties from 19 November 1955 and were therefore not assessable in his individual hands.

Analysis: Once self-acquired property is blended with the coparcenary estate, it ceases to retain its separate character and becomes joint family property. On that basis, the property in question could not be taxed as the individual property of the assessee.

Conclusion: The properties acquired the character of coparcenary property from 19 November 1955 and were not assessable in the assessee's individual hands.

Final Conclusion: The reference was answered in favour of the assessee on both questions, affirming that blending of separate property with joint family property does not require a registered transfer and that the property ceased to be assessable as individual property after such blending.

Ratio Decidendi: A coparcener may blend self-acquired property with coparcenary property without a registered transfer, and upon such blending the property acquires joint family character and is no longer assessable as the coparcener's separate property.

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