Separate property and blending require clear intention; trust and will assets remained outside HUF income.

Property received under a trust settlement or a will retains the character intended by the instrument, and the decisive question is whether the document shows an intention to create separate property or family property. Here, the trust deed expressly gave the sons equal shares for their own absolute use and benefit, and the will, read as a whole, did not impose any restriction indicating that the income belonged to the joint family estate. Blending with Hindu undivided family property requires clear and voluntary abandonment of separate rights and an unequivocal throwing of the property into the common stock; mere common banking, mixed entries, or lack of separate accounts is insufficient. On these principles, the income was not assessable as HUF income.

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Issues: Whether the income derived from property received under a trust settlement and under a will was assessable in the hands of the Hindu undivided family on the footing that the assessee had blended those properties with the family estate.

Analysis: The character of property received under a settlement or will depends primarily on the intention manifested by the instrument. The trust deed used clear words providing that the sons were to receive the property in equal shares for their own absolute use and benefit, which indicated that the property taken thereunder was intended to be separate property. Clause 12 of the will, read as a whole and in the surrounding circumstances, likewise did not impose any restriction suggesting that the income was meant for the family or joint estate. On the question of blending, a clear and voluntary intention to abandon separate rights and throw the property into the common stock must be established. Mere absence of separate accounts, common banking arrangements, or mixed entries in the books is insufficient to prove such an intention.

Conclusion: The income from the trust settlement and the will was not assessable as Hindu undivided family income. The properties retained the character of separate property, and no deliberate blending with the joint family estate was proved.

Ratio Decidendi: Property received under a settlement or will retains the character intended by the instrument, and blending into joint family property is established only by clear proof of a voluntary and unequivocal intention to abandon separate ownership and throw the property into the common stock.

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