TaxTMI 
TaxTMI 
TaxTMI 
1982 (7) TMI 143
X X X X Extracts X X X X
X X X X Extracts X X X X
....is aggrieved with the directions of the AAC to exclude the value of immovable assets on the ground that such assets had already been partitioned amongst the members of the HUF. In the subsequent two appeals relating to asst. yrs. 1974-75 and 1975-76, there is a common grievance that the AAC erred in directing the WTO to exclude the value of immovable assets on the ground that such assets had already been partitioned amongst the members of the family. The Revenue has contended that the AAC further erred in following her order in Appeal No. WT-28/AMB/79-80 dt. 31st March, 1980. For the sake of convenience, these appeals have been heard together and are being disposed off by this consolidated order. 2. The relevant facts, which have to be ta....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion of partial partition in the family in respect of immovable properties. In this application, it was claimed that there was a partial partition made on 16th Aug., 1971 by various trust deeds. The WTO, however, did not accept this claim on the ground that no partition deed of immovable properties had been executed or registered, that the properties had been transferred through five trusts and the Karta is not competent to do so, that the immovable properties had not been partitioned by metes and bounds and that the separated sons of Shri Sita Ram, namely, Raj Kishan, and Rajinder Kumar are neither members nor coparceners of the HUF because they had already severed their connections from the HUF and as such the claim made by the assessee c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the WT Act are in pari materia with the provisions of s. 25A of the IT Act, 1922. It was submitted that though the words partial partition were not mentioned in s. 25A of the IT Act, 1922 yet the Courts held that the partial partition could be recognised. The ld. counsel for the assessee drew support for his submissions from the comments made by the ld. author A.C. Sampath Iyengar in Vol. I, 4th edition of Three New Taxes. 8. He also submitted that s. 20A has been brought on the statute book of the WT Act, 1957 w.e.f. 1st April, 1980 and this section provides that where a partial partition has taken place after 31st Dec., 1978 by a deeming fiction in law such family shall continue to be liable to be assessed under the WT Act as if no s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....) 415 : (1982) 133 ITR 690 (SC) has held that "partition referred to in sub-s. (1) of s. 171 of the IT Act, 1961 includes a partial partition also either as regards the persons constituting the undivided family or the properties belonging it or both, in view of the provisions contained in the other sub-sections and the Explanation. After a partial partition as regards the property, the property divided is held by the members of the undivided family as divided members with all the incidence following therefrom and the property not so divided, as members of an undivided family. The fiction enacted in s. 171 (1) of the Act can, therefore, operate in such a case also because the family which has become divided as regards the property which is t....