Partition must be effective and acted upon before a tax concession can be claimed under the composition scheme.

Entitlement to a statutory tax concession based on partition depends on proof of a partition effective in law and actually acted upon with immediate separation and exclusive enjoyment by the sharers. A deed that postpones possession until majority, together with conduct showing continued joint treatment of the property, does not establish the jurisdictional fact required for composition. Prior applications covering the entire property and the absence of earlier assertion of partition supported rejection of the claim, and the continuing service connection in the petitioner's name was consistent with joint enjoyment. The claim for composition was therefore not sustainable on the stated facts.

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Issues: Whether the petitioner was entitled to composition under section 65 of the Madras Agricultural Income-tax Act on the basis of the alleged family partition deed, and whether the deed, not having been acted upon with immediate separate possession and enjoyment, could sustain the claimed concession.

Analysis: Entitlement to a statutory concession under the taxing enactment depended on the existence of the relevant jurisdictional fact, namely a partition which was not merely recorded in writing but was intended for and followed by immediate separation and exclusive enjoyment by the sharers. The partition deed in question recited that the minors would obtain possession only after attaining majority, showing that immediate division and enjoyment were postponed. The assessee's prior conduct, including continued composition applications for the entire property and the absence of any earlier assertion of partition, supported the inference that the document had not been acted upon. The continuing service connection in the petitioner's name was also consistent with joint enjoyment rather than completed partition. On these facts, the authority was entitled to examine the deed and reject the claim for composition.

Conclusion: The petitioner was not entitled to composition under section 65, and the rejection of the application was justified. The decision was against the petitioner and in favour of the Revenue.

Ratio Decidendi: For a statutory tax concession founded on partition, the assessee must establish a partition that is effective in law and actually acted upon with immediate separation and exclusive enjoyment; a merely nominal or postponed partition does not satisfy the jurisdictional fact required for the concession.

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