TMI Blog1978 (4) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... l. ITO, however, issued a notice on July 18, 1972, calling upon the petitioner to give consent for being assessed for the entire holding. The petitioner did not give his consent on the ground that the lands settled in favour of his wife and daughter have to be excluded from his holding. The Agrl. ITO however, held that since the lands settled in the name of his wife and daughter still continue to be in his enjoyment it should be included in his holding. In that view, he rejected the application for composition filed by the petitioner by an order dated May 26, 1974. Against that order, the petitioner filed a revision petition to the Commr. of Agrl. I.T. under s. 34 contending that the settlement effected in favour of his wife and daughter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licable to the property settled on his daughter by the petitioner, after she had attained majority that provision in s. 9(2) will cease to apply. Therefore, in any event, the settlement of lands made in favour of the daughter by the petitioner cannot be clubbed with the holding of the petitioner as has been done in this case. Therefore, those properties which have been settled on the petitioner's daughter will stand excluded from the petitioner's holding. The second ground is that the Commissioner is in error in treating the lands settled on the wife and daughter by the petitioner as his property, overlooking the fact that the property which fell to his share in a partition between himself, and his father and his brothers on September 15, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Supreme Court held that the property of the joint family did not cease to belong to the family merely because at a particular point of time the property was held by a single or sole coparcener, that, therefore, the income received therefrom by the coparcener was taxable as income of the HUF and not as his individual income, that under the Hindu system of law a joint family may consist of a single male member and widows of deceased male members, and that the I.T. Act does not indicate that a HUF as an assessable entity must consist of at least two male members. In N. V. Narendranath v. CWT [1969] 74 ITR 190, the Supreme Court had to deal with the nature of certain properties, which were allotted at a partition of the joint family prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court had expressed its view thus : " 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 293 (SC) and the Appellate Tribunal was right in holding that the status of the respondent was that of a Hindu undivided family and not that of an individual. " The above two decisions have been followed by a Full Bench of the Allahabad High Court, re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T has found that the settlement deeds executed by the petitioner in favour of his wife and minor daughter are valid. But he held, notwithstanding the fact that the settlements are valid, still, in view of s. 9(2), the income from those properties will have to be clubbed with the income of the petitioner. Now, that the property transferred in favour of the wife and the daughter is found to be the joint family property and not his absolute property, s. 9(2) cannot apply. In this view, the impugned order of the Commissioner has to be and is hereby set aside and there will be a direction to the second respondent to deal with the petitioner's composition application on merits, in accordance with law. Accordingly, the writ petition is allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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