1994 (7) TMI 23

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....ndivided family from the funds allotted to them as a result of partial partition on March 31, 1979, should be added to the assessee's income ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in sustaining the levy of interest under section 139(8) ? " The brief facts of the case are that an addition of Rs. 7,126 was made by the Income-tax Officer while finalising the assessment. The partial partition of the Hindu undivided family was effected by the assessee-Hindu undivided family on March 31, 1979, which was accepted by the Income-tax Officer under section 171(3) of the Act on January 17, 1980. Under section 171(9)(a), partial partitions which are effected after December 31, 1978, are not recognis....

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....l be inquired into under sub-section (2) and no finding shall be recorded under sub-section (3) that such partial partition had taken place and any finding recorded under sub-section (3) to that effect whether before or after the 18th day of June, 1980, being the date of introduction of the Finance (No. 2) Bill, 1980, shall be null and void ; (b) such family shall continue to be liable to be assessed under this Act as if no such partial partition had taken place ; (c) each member or group of members of such family immediately before such partial partition and the family shall be jointly and severally liable for any tax, penalty, interest, fine or other sum payable under this Act by the family in respect of any period, whether before o....

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....that the finding recorded before or after June 18, 1980, being the date of introduction of the Finance Bill, 1980, shall be null and void. When by such a provision even the amendment with retrospective effect has been brought on the statute book, the order which has been passed by the Income-tax Officer under section 171(3) has to be considered as null and void. Before this date, there could have been any partial or total partition of the joint family property. The partial partition could be with regard to the persons constituting the joint family or could be with regard to the properties belonging to the joint family. In view of this specific provision of law, the Income-tax Officer had no option but to treat the order passed under section....