2008 (4) TMI 285

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....ation to his share in such rental income. One of those eight owners, Sumitra Devi, filed such returns which were accepted without scrutiny for the assessment years 1991-92 to 1996-97. The return of Sumitra Devi for the assessment year 1997-98 was scrutinized, when it was accepted that the part rental income of the said building is of Sumitra Devi. Subsequent thereto, for the assessment year 1998-99, the return of Sumitra Devi on being scrutinized, it was opined that she is not a part owner of the building in question and that the true owner of the building in question is the appellant-Hindu undivided family. On the basis of such opinion, a notice under section 147 of the Income-tax Act, 1961, was issued to the appellant (HUF). Thereupon, un....

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.... has not been a complete partition. Section 171 of the Income-tax Act makes it clear that the provisions of the said section would apply only when a Hindu undivided family is already an assessee. Unless it is an assessee, the provisions of section 171 of the Income-tax Act will not apply to a Hindu undivided family even for the purpose of Income-tax Act. In other words, by taking recourse to section 171 of the Act, it cannot be contended that though the Hindu family has not been disrupted completely by physical division of properties, income in its hands will be deemed to be income of the Hindu family, unless of course, such income is taxable income of the Hindu undivided family earned before its disruption by a physical division of all its....