TaxTMI 
TaxTMI 
1981 (8) TMI 54
X X X X Extracts X X X X
X X X X Extracts X X X X
....ar questions arose in the assessment years 1973-74 and 1974-75. Similar questions having been raised in all the three references and the same will be disposed of by this common judgment. The question arose in the context of s. 4(1A) (b) read with cl. (d) of the Explanation. The said provision, so far as material for the purpose of this matter, requires to be quoted in order to understand the controversy: " 4. (1A) Where, in the case of an individual being a member of Hindu undivided family, any property having been the separate property of the individual has at any time after the 31st day December, 1969, been converted by the individual into property belonging to the family through the act of impressing such separate property with the ch....
X X X X Extracts X X X X
X X X X Extracts X X X X
....property was thrown consisted of the assessee, his brother and their mother. In the context of these facts, the question arose whether the interest attributable to the assessee in the converted property was 1/3rd, 1/6th or 1/12th. The assessee contended that it was 1/12th as 1/3rd interest in the HUF would take within its sweep his own individual interest as well as the interest of, his wife and two major sons (1/3 x 1/4). In the alternative, it was contended that in any case, the interest attributable to the assessee in the converted property cannot be more than 1/6th having regard to the fact that his interest and the interest of his wife could perhaps be clubbed together. The revenue on the other hand assumed the posture that he being a ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....minor child and, therefore, that question does not arise. The share of the major sons, of course, cannot be clubbed together. The interest of the assessee in the converted property in the family must, therefore, be computed on the basis of 1/6th share (1/3 x 1/2 = 1/6). The view taken by the Tribunal is that the interest of the assessee in the converted property should be valued on the basis of an 1/3rd share without taking into account the fact that each of his major sons would be entitled to a share in case of total partition of the family. The expression " total partition " employed in cl. (d) of the Explanation is of considerable significance. It would justify the conclusion that the interest which a minor son would acquire upon there b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd against circumstances of the case, the the assessee. Appellate Tribunal was right in law in holding that at least some portion of the stock-holding (namely, the converted property) was includible in the assessee-individual's net wealth under section 4(1A) of the W.T. Act as deemed asset ? 2. If the above question is 1/6th portion of the converted answered in the affirmative, would property would be includible in the the deemed asset so includible in net wealth of the assessee. the assessee-individual's net wealth be 1/3rd, 1/6th or 1/12th portion of the converted property ? W.T.R. No. 6 of 1978. 1. Whether, on the facts and In the affirmative and against circumstances of the case, the the assessee. Appellate Tribunal wa....