TMI Blog1997 (8) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... ver may be the position under the Hindu law, section 171 of the Income-tax Act is quite clear in this regard - partial partition can not be recognised if properties which are capable of division are not actually divided. - - - - - Dated:- 28-8-1997 - Judge(s) : SUHAS C. SEN. and S. SAGHIR AHMAD. JUDGMENT Leave granted in SLP No. 6765 of 1992. This is a case of partial partition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 50,114.68 The case of the assessee is that they have not divided these joint properties by metes and bounds but it is permissible in law in case of partial partition, not to divide these properties invested in business in the case of continuing business. The members of a Hindu undivided family may continue doing the business and at the same time notionally divide the properties among the va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erance of status of the family may tantamount to partition under the Hindu law of joint family, the requirement of the Income-tax Act is a little more. A partition to be recognised under the Income-tax Act must lead to physical division of the joint properties. Partition and partial partition have been defined in section 171 as: "Explanation.---In this section,--- (a) 'partition' means--- (i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was possible for the family to have a partial partition with regard to these assets without physically dividing them. We are of the view that the decision of the High Court is erroneous. If the properties belonging to a Hindu undivided family are not partitioned at all by dividing it among the members, even though capable of division, then the members of the family cannot say that so far as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciple appearing from the section itself is that in order to claim partition in respect of any property, division of the property is a pre-requisite. The Hindu undivided family, cannot say that it stands divided in respect of the property and at the same time enjoy the property jointly. Whatever may be the position under the Hindu law, section 171 of the Income-tax Act is quite clear in this regard ..... X X X X Extracts X X X X X X X X Extracts X X X X
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