Hindu Undivided Family continuity on valuation date sustained where evidence did not prove pre-existing disruption.

Whether a Hindu undivided family stood disrupted before the valuation date was treated as a question of fact to be decided on the entire evidence. The filing of a partition suit indicated an intention to separate, but the Tribunal also relied on a later award and decree recording continuation of the joint status up to 2 November 1956 and other surrounding circumstances. As the finding that the family continued in joint status on the valuation date was not shown to be perverse or unsupported by material, the wealth-tax assessment as a Hindu undivided family was upheld.

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Issues: Whether the assessee Hindu undivided family was in existence on the relevant valuation date so as to be assessable to wealth-tax as a Hindu undivided family.

Analysis: The relevant enquiry was whether there had been a disruption of the Hindu undivided family before the valuation date. The institution of a partition suit is ordinarily a clear indication of an intention to separate, but the date of disruption is ultimately a question of fact to be determined from the entire material on record. Here, although the suit for partition was filed earlier, there was also a subsequent award and decree recording continuation of the joint status up to 2 November 1956, along with other surrounding circumstances. The Tribunal ed the whole evidence and concluded that the family continued until the valuation date. That finding was not shown to be perverse or unsupported by material.

Conclusion: The Hindu undivided family was held to be in existence on the valuation date, and the assessment as a Hindu undivided family was upheld in favour of the Revenue.

Final Conclusion: The reference was answered by sustaining the wealth-tax assessment on the assessee in its capacity as a Hindu undivided family.

Ratio Decidendi: Whether a Hindu undivided family stood disrupted before the valuation date is a question of fact to be decided on the entirety of evidence, and an assessment under the Wealth-tax Act can be sustained if the family is found to have continued in joint status on that date.

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