https://www.taxtmi.com/caselaws?id=256290 A family arrangement allocating assets to minor daughters can operate as a distinct legal settlement and, once accepted, the settled amount ceases to form part of the Hindu undivided family's wealth. Section 171 applies only where partition of an HUF is claimed and examined under the Income-tax Act, so it does not control every family settlement. Income arising from fixed deposits created out of the settled amount could not be assessed in the hands of the HUF because the amount had already moved out of HUF ownership. Observations based on matters beyond the income-tax issue were not sustainable. en-us Wed, 19 Nov 2014 00:00:00 +0530 Thu, 07 May 2015 17:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=256290 A family arrangement allocating assets to minor daughters can operate as a distinct legal settlement and, once accepted, the settled amount ceases to form part of the Hindu undivided family's wealth. Section 171 applies only where partition of an HUF is claimed and examined under the Income-tax Act, so it does not control every family settlement. Income arising from fixed deposits created out of the settled amount could not be assessed in the hands of the HUF because the amount had already moved out of HUF ownership. Observations based on matters beyond the income-tax issue were not sustainable. Case-Laws Income Tax Wed, 19 Nov 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=256290