Scribd
Upload
344 views

Family Law-Ii

The Supreme Court upheld the Allahabad High Court's decision that the credit balance that a son inherited from his father after a partial partition of their HUF should be assessed as the son's individual income and not the income of the son's HUF. This changed the traditional view in Hindu law. The Supreme Court analyzed different High Court decisions across India and reaffirmed its position in a later case. However, more recent cases have presented opposing views on whether inherited assets should be considered individual income or HUF income.

Uploaded by

Diya Pande
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
344 views

Family Law-Ii

The Supreme Court upheld the Allahabad High Court's decision that the credit balance that a son inherited from his father after a partial partition of their HUF should be assessed as the son's individual income and not the income of the son's HUF. This changed the traditional view in Hindu law. The Supreme Court analyzed different High Court decisions across India and reaffirmed its position in a later case. However, more recent cases have presented opposing views on whether inherited assets should be considered individual income or HUF income.

Uploaded by

Diya Pande
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 7

A CRITICAL REVIEW OF

COMMISSIONER OF
WEALTH TAX, KANPUR v.
CHANDER SEN
(AIR 1986 SC 1753)
AKSHITA MITTAL
UG2016-06
FACTS OF THE CASE
• Rangi Lal and his son, Chander Sen, constituted a Hindu undivided family.
• On October 10, 1961, there was a partial partition by which the business
was divided between the father and the son, and, thereafter, it was
carried on by a partnership consisting of the two.
• The firm was being assessed to income-tax as a registered firm and the
two partners were being separately assessed in respect of their share of
income, while the house property of the family continued to remain joint.
• On July 17, 1965, Rangi Lal died leaving behind his son, Chander Sen, and
his grandsons.
• On his death there was a credit balance of Rs. 1,85,043 in his account in
the books of the partnership firm.
• For the assessment year 1966-67, Chander Sen, who constituted a joint
family with his own sons, filed a return of his net wealth which did not
include the credit balance devolved on him.
PROCEDURAL HISTORY
Income Tax and
Wealth tax
commissioner Income-tax Appellate
Tribunal

Supreme Court

High Court of
Judicature at
Allahabad
ISSUE RAISED

Whether the income or asset which a son inherits from his father
when separated by partition should be assessed as income of the
HUF of son or his individual income?
JUDICIAL DECISION

QUORAM: Hon’ble Justice R.S. Pathak and Hon’ble Justice


Sabyasachi Mukharji.

• Gujarat High Court (1977)


• Madras High Court (1978)
• Madhya Pradesh High Court (1982)
• Andhra Pradesh High Court (1983)

VERDICT: Upheld Allahabad High Court’s decision.


CRITICAL ANALYSIS

• This case changed the legal position about the nature


of the property inherited. It overruled the traditional
view of Hindu Law.
• Critique of different High Courts across the country.
• Reaffirmed by the Supreme Court in Yudishter v.
Ashok Kumar (1987)
• Should be governed by Indian Partnership Act, 1932.
• Ignored S. 6 of Hindu Succession Act, 1956.
RECENT DEVELOPMENT:

Bhanwar Singh v. Puran


(2008) along with different
High courts’ decisions.

OP
PO
E V SIT
IEW

Ass Kaur (Smt.)


(Deceased) by LRs v.
Kartar Singh (Deceased)
by LRs (2007)

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy