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2014 (12) TMI 605 - MADHYA PRADESH HIGH COURTAssessment after partition of a Hindu undivided family u/s 171 – mandatory requirement to conduct inquiry fulfilled or not – Held that:- Section 171 states that at the time of making an assessment u/s 143 or section 144, if it is claimed on behalf of the assessee that the property is a joint family property subject to partial or total partition, the AO shall make an inquiry thereto after giving notice of the inquiry to the members of the family - in the assessment order, the AO discloses the fact of family partition, filing of the application u/s 171 thereafter he takes note of the material available on record and then records a finding with regard to the partition, to say that assessee has not adduced any evidence in this regard and proceed to decide the matter but did not conduct any inquiry as contemplated under sub-section (2) of section 171 inasmuch as no notices to other members of the family were issued nor a detailed inquiry has been conducted – relying upon Kapurchand Shrimal Versus Commissioner of Income-Tax, AP [1981 (8) TMI 2 - SUPREME Court] - the AO has failed to comply with the statutory provision inasmuch as a detailed inquiry as contemplated u/s 171(2) after notice to the family members has not been done – thus, the matter is to be remitted back to the AO for re-consideration – Decided in favour of assessee.
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