AIR 1986 SUPREME COURT 1753 ::1986 TAX. L. R. 1328 ::1986 SCC (Tax) 641 ::(1986) 58 CurTaxRep 119 ::1986 (3) SCC 567 ::(1987) 100 Mad LW 347 ::1986 (161) ITR 370 ::1986 UPTC 1145 ::(1986) 27 Taxman 330 ::1986 Taxation 82 (2) 58 ::(1986) 82 Taxation 58

Supreme Court Of India

(From : Allahabad)

Hon'ble Judge(s): R. S. Pathak, Sabyasachi Mukharji , JJ

(A) Wealth-Tax Act (27 of 1957) , S.3— Hindu Succession Act (30 of 1956) , Preamble, S.8— Partition of joint family business between father and his only son - Business continued by father and son by forming firm - Son forming joint family with his own sons - Death of father - Amount standing to credit of deceased father in account of firm devolves on son as his individual income - S. 8 has modified the old Hindu Law - Such income cannot be included in computing net wealth of son's joint family. (1977) 108 ITR 417 (Guj), Overruled. There was a partition of joint family business between father and his only son. Thereafter they continued the business in the name of partnership firm. The son formed a joint family with his own sons. The father died and amount standing to the credit of the deceased father in the account of the firm devolved on his son. The wealth tax authorities while assessing the wealth-tax in respect of the family of the son i.e. the assessee, included the amount in computing wealth. Held, that the son inherited the property as an individual and not as karta of his own family. Hence, it could not be included in computing the assessee's wealth.(Para 20) Under the Hindu Law the son would inherit the property of his father as karta of his own family. But the Hindu Succession Act has mod....