https://www.taxtmi.com/caselaws?id=59230 For section 171 of the Income-tax Act, a Hindu undivided family is recognised as partitioned only when joint family property is actually divided by metes and bounds, or in such manner as the property admits of, so it ceases to remain joint. On the facts, repeated partition efforts had failed, the dispute went to arbitration, and the award allotted the property to one coparcener with cash compensation to the others; the arrangement was then implemented through the sale transaction. The finding that this was a colourable device to avoid tax was rejected because the long-standing dispute was substantively resolved and the partition was given effect. The partition had to be accepted for income-tax purposes. en-us Mon, 22 Nov 2004 00:00:00 +0530 Wed, 27 Jun 2012 12:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59230 For section 171 of the Income-tax Act, a Hindu undivided family is recognised as partitioned only when joint family property is actually divided by metes and bounds, or in such manner as the property admits of, so it ceases to remain joint. On the facts, repeated partition efforts had failed, the dispute went to arbitration, and the award allotted the property to one coparcener with cash compensation to the others; the arrangement was then implemented through the sale transaction. The finding that this was a colourable device to avoid tax was rejected because the long-standing dispute was substantively resolved and the partition was given effect. The partition had to be accepted for income-tax purposes. Case-Laws Income Tax Mon, 22 Nov 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59230