TMI Blog1978 (2) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... who died in the year 1945, left three sons : Srinivas, Nathmal and Tolaram. Narmal had carried on an Hindu undivided family business started round about 1925. It appears that the name of the business was changed to Nathmal Tolaram from 1936-37 and that the income of the business was assessed as Hindu undivided family income since then. The previous records do not seem to be very clear, but, from the year 1942 to 1950, the income of this business was certainly assessed as Hindu undivided family income. It was partitioned with effect from 6th April, 1949. After the partition, the business carried on at two places, Dhubri and Gauripore, was converted into a partnership business evidenced by a deed of partnership executed by the three brothers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal was justified in holding that the share income of Rs. 21,746 from Messrs. Nathmal Tolaram (Petrol Depot) was assessable in the hands of the assessee-family ? " The position seems to be clear in law. The following passage in Mulla's Hindu Law, fourteenth edition, at page 278, has been quoted and relied upon by the High Court : " 228. Property jointly acquired.--(1)Where property has been acquired in business by persons constituting a joint Hindu family by their joint labour, the question arises whether the property so acquired is joint family property, or whether it is merely the joint property of the joint acquirers, or whether it is ordinary partnership property. If it is joint family property, the male issue of the acquire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon N. V. Narendranath v. Commissioner of Wealth-tax [1969] 74 ITR 190, 197 (SC), where this court had observed : " In the present case the property which is sought to be taxed in the hands of the appellant originally belonged to the Hindu undivided family belonging to the appellant, his father and his brothers. There were joint family properties of that Hindu undivided family when the partition took place between the appellant, his father and his brothers and these properties came to the share of the appellant and the question presented for determination is whether they ceased to bear the character of joint family properties and became the absolute properties of the appellant. As pointed out by the judicial Committee in Arunachalam's c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here was a partition between the assessee, his wife and minor daughters on the one hand and his father and brothers on the other hand. But the effect of partition did not affect the character of these properties which did not cease to be joint family properties in the hands of the appellant. Our conclusion is that when a coparcener having a wife and two minor daughters and no son receives his share of the joint family properties on partition, such property in the hands of the coparcener belongs to the Hindu undivided family of himself, his wife and minor daughters and cannot be assessed as his individual property. It is clear that the present case falls within the ratio of the decision of this court in Gowli Buddanna's case [1966] 60 ITR 29 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e character of any nucleus of divided property. The business prior to the partition of the Hindu undivided family was assessed as joint family business for a number of years without any protest by Tolaram. The partition deed signed by Tolaram and others itself contained a recital that the business was a joint family business. The finding of fact reached by the Tribunal that the business was, until partition, a joint family business could not be said to be unreasonable or perverse. If that be so, the share of Tolaram in partnership which came into being on the partition of the Hindu undivided family could not be regarded as his separate property. It became the property of the joint Hindu family of Tolaram and his sons. This is the finding of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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