COMMISSIONER OF WEALTH TAX Vs. CHANDRASINHRAO D GAEKWAD

JUDGEMENT

(1.) AT the instance of CWT, Baroda, two questions of law arising out of its orders in WT Appeals Nos. 585 to 580/Ahd/1981 relating to asst. yrs. 1966 -67 to 1970 -71 has been referred to this Court for its opinion with the statement of the case. The questions referred are as under :

(2.) THE facts and circumstances of the case in which the questions have arisen are that assessee Chandrasinhrao H. Gaekwad was being assessed as HUF. The HUF consisted of two brothers Shri Chandrasinhrao and Shri Dilipsinhrao, sons of Dadasaheb. Chandrasinhrao was the Karta of the family. Said Chandrasinhrao died on 27th March, 1965. On the death of Shri Chandrasinhrao on 27th March, 1965, it was claimed for the asst. year 1966 -67 and subsequent assessment years that by operation of law a complete partition of HUF properties between the two branches of brothers had taken place. The claim was made in income -tax proceedings as well as in wealth -tax proceedings. The WTO did not agree with the claim of the assessee, as the same was not accepted by ITO too under S. 171 of the IT Act, 1961. On appeal before the AAC, he too did not agree with the claim of the partition either under WT Act or under IT Act. However, AAC upheld the contention of the assessee that to the extent the property has vested in the heirs of Chandrasinhrao by succession it has ceased to be the property of HUF and the same has to be excluded from the assessment of wealth of the existing HUF. Appeal against the order of AAC did not find favour with the Tribunal. Following decision of this Court in CWT vs. Kantilal Manilal (1973) 90 ITR 289 (Guj) : TC 64R.788 and of the Mysore High Court in CIT vs. Smt. Nagaratnamma (1970) 76 ITR 352 (Mys) : TC 37R.302, the Tribunal confirmed the view taken by the AAC.

(3.) THE question No. 1 requires an enquiry whether as a result of death of Shri Chandrasinhrao on 27th March, 1965, a complete partition of HUF of Dadasaheb Ukajirao of which Chandrasinhrao was the Karta took place and the existence of that HUF as such came to an end.