Partial partition of HUF immovable property requires division by metes and bounds; an unregistered award cannot fix an earlier effective date.

For section 171 of the Income-tax Act, a partial partition of immovable HUF property is recognised only when the property is actually divided by metes and bounds, and a document must itself effect the partition to prove an earlier date. An unregistered arbitral award could not create or affect title in the immovable property, and the later registered partition deed showed that partition was being effected on its date rather than merely recording an already completed division. The reference to rents from 1 January 1961 did not prove earlier partition. The effective date was therefore 2 February 1962, and the claim for partition from 1 January 1961 failed.

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Issues: Whether partial partition of immovable properties of a Hindu undivided family under section 171 of the Income-tax Act, 1961, could be given effect from 1 January 1961 on the basis of an unregistered arbitral award and a later registered partition deed.

Analysis: Section 171 recognises complete or partial partition only when properties capable of physical division are actually divided by metes and bounds. Such division may be proved by a document which, by its own force, effects the partition, such as a registered award or a registered deed of partition. The award in question was unregistered and therefore could not itself operate to create or affect title in immovable property. The recitals in the later registered deed showed that the parties were effecting partition in accordance with the award on the date of the deed, and not merely formalising an already completed partition from the earlier date. The reference in the deed to rents from 1 January 1961 did not establish that the property itself had already been partitioned on that date.

Conclusion: The Tribunal was not right in law in allowing partial partition with effect from 1 January 1961. The effective date of partition was 2 February 1962, and the answer was against the assessee and in favour of the Revenue.

Final Conclusion: Partial partition of the immovable properties was not established from 1 January 1961 on the materials produced, and the departmental authorities were correct in treating the partition as effective only from 2 February 1962.

Ratio Decidendi: For purposes of section 171 of the Income-tax Act, 1961, partition of immovable property is recognised only when the property is actually divided by metes and bounds, and an unregistered award cannot by itself effect such partition.

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