AIR 1959 ASSAM 123

Assam High Court

Hon'ble Judge(s): Sarjoo Prasad , C.J. AND H. Deka , J

Income-tax - Hindu Law - Partition - Partial petition - Partition of family business only - Validity - Provision in deed regarding division of income from joint property - Effect - Registration of partnership and assessment under Income-tax Act. Income-Tax Act (11 of 1922) , S.25A, S.26A— In Hindu law, partition may take place by mere severance or disruption of the joint family status and definition of shares of the various coparcencers or by division of the properties by metes and bounds. There is nothing in the law @page-Ass124 to prohibit the members of the joint family by mutual agreement from excluding a joint family property from the joint family assets and in treating that property alone as belonging to the members in defined snares. Even if there is a partial partition of some of the joint family assets or an item of property is alienated to a stranger or an asset of the family is divided and constituted into a partnership specifying definite shares of the partners, the family may still continue to be joint and continue to own other properties jointly. The assessment under the Income-tax Act on the undivided Hindu family would then be confined to the income of the property so remaining undivided and the income of the property partitioned or alienated or constituted into a partnership would be excluded from....