COMMISSIONER OF INCOME-TAX Vs. WAZIR SINGH

JUDGEMENT

(1.) THE short point arising for determination here pertains to the partition of a Hindu undivided family possessed of no assets, but burdened with debts.

(2.) THE assessee was a Hindu undivided family consisting of Prem Singh, Jagit Singh and Manjit Singh. On April 1, 1973, a partial partition took place whereby Prem Singh was separated from the Hindu undivided family. An order recognising this partial partition was then sought from the income-tax authorities. This was refused by the Income-tax Officer holding that the existence of property or some asset was a sine qua non for partition, whether partial or total, and in the absence of any asset to be divided amongst the members of the family, the provisions of Section 171 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), had no role to play.

(3.) THE Appellate Assistant Commissioner, on appeal, however, took a contrary view and accepted the assessee's claim for partition. This order was later upheld by the Tribunal. This is the factual background leading to the following question being referred for the opinion of this court :