COMMISSIONER OF INCOME TAX Vs. SHANKAR LAL BUDHIA

JUDGEMENT

(1.) WHETHER the status of an individual asses-see governed by the Hindu law would change to that of a Hindu undivided family under the Income-tax Act merely on his marriage (as yet without issue)--is the somewhat ticklish question necessitating this reference to the Full Bench.

(2.) THE facts may be noticed with relative brevity. THE respondent-assessee, Shri Shankar Lal Budhia, was originally a member of a larger Hindu undivided family of Shri Mahabir Prasad Budhia. Way back on March 22, 1956, there was a partial partition of the said family and at that time the respondent was a minor. THErein, he was allocated shares in the Ranchi Electric Supply Co., Budhia Brothers Pvt. Ltd. and Ganpat-rai Properties Pvt. Ltd. and thereafter he acquired interest in some other immovable property as well. It is common ground that from the date of the partial partition, for nearly a decade, the returns were filed by him in the status of an individual up to the assessment year 1966-67. THE assessment was also throughout made in the status of an individual.

(3.) HAVING thus noticed that the concept of a Hindu undivided family under the Act is different and distinct from a Hindu coparcenary which is indeed a much narrower concept, one may proceed to the undisputed and the basic rule of Hindu law applicable in the context. This indeed may be noticed from the terse element thereof in article 340 of the authoritative work of Mulla on the Principles of Hindu Law: