TMI Blog1987 (10) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... of the family ? " The assessment year in question is 1978-79. The assessee, Shantilal C. Shah, had been assessed as an individual. The Hindu undivided family of the assessee was a partner in the firm of M/s. Anandji. The Income-tax Officer included in the income of the assessee a sum of Rs. 3,830 as his share in the income of the Hindu undivided family from the firm, rejecting the contention of the assessee that the income from the firm was assessable only in the hands of the Hindu undivided family. The Appellate Assistant Commissioner held that in view of the Kerala joint Hindu Family System (Abolition) Act, 1975, which came into force with effect from December 1, 1976, there was a deemed partition of the Hindu undivided family and, cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly as respects such property and as if each one of them is holding his or her share separately as full owner thereof. There is a total annihilation of the system in the State. The properties held by the Hindu undivided family thereafter have lost the character of joint family property and have become the individual property of the members. The individual right has also been determined, as joint tenancy has given way to tenancy-in-common. Therefore, after December 1, 1976, the individual members of the family have a distinct share in the property and this change has been brought about by operation of law and not by act of parties. Where a joint family has ceased to exist by operation of law, the question of recording a partition as envisag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... immediately before the partition. The machinery is one which enables the authorities to assess the income earned by the Hindu undivided family even after its disruption by partition. The same machinery has to be applied for bringing to tax the income of the Hindu undivided family after its extinction by operation of law. The Income-tax Officer is, therefore, empowered to make reassessment in respect of the income earned by the Hindu undivided family up to December 1, 1976, by issuing notice to the quondam karta in the name of the joint family. The income accruing, therefore, can only be assessed in the hands of the members of the family in proportion to their share as the income of the individual members and not as that of the Hindu undiv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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