COMMISSIONER OF INCOME TAX Vs. HOSHIARI LAL KALYANI

JUDGEMENT

(1.) In this reference under Section 256(1) of the I.T. Act, 1961, the following question was referred to this court:

(2.) The assessee is an HUF and the assessee's reference relates to the assessment year 1965-66. It was claimed that by a registered deed there was a partial partition of the assessee-HUF with effect from July 1, 1964. As a result, the assessee-HUF continued to be joint in respect of other assets and a smaller HUF was formed in respect of the assets mentioned in the deed.

(3.) The assessee was an HUF consisting of Hoshiari Lal Kalyani, his wife, Sabitri Debi, three minor sons and five unmarried daughters. The HUF had: (i) half share in the firm of Kaluram Chiranjilal, Dhupguri, (ii) three annas share in the firm, Bajrang Rice Mill, Maynaguri, (iii) three annas share in the firm, Hanuman Rice & Oil Mills, Dhupguri, and (iv) a house property. On July 1, 1964, Hoshiari Lal Kalyani, the karta (the husband of Sm. Sabitri Debi and father of other minor sons and daughters) made a partial partition of the family as under : --------------------------------------------------------------------------------