Kerala High Court
Commissioner Of Income-Tax vs N. Krishna Iyer (Huf) (No. 1) on 29 March, 1989
Equivalent citations: [1991]187ITR634(KER)
Author: K.S. Paripoornan
Bench: K.S. Paripoornan
JUDGMENT K.S. Paripoornan, J.
1. The Revenue is the applicant in both these cases. Income-tax Reference No. 8 of 1983 arises under the Wealth-tax Act. Income-tax Reference No. 190 of 1985 arises under the Income-tax Act. In both these cases, the common question that arises for consideration is the scope and impact of the Kerala Joint Hindu Family System (Abolition) Act, 1975.
2. The questions referred at the instance of the Revenue in Income-tax Reference No. 8 of 1983 are as follows :
1. Whether, on the facts and in the circumstances of the case and also in the absence of a physical division of properties contemplated under the Wealth-tax Act, 1957, the Tribunal is right in holding, in a case governed by a Central statute, that the Hindu undivided family was extinct by statute and, after its extinction, there would be no charge to tax ?
2. Whether, on the facts and in the circumstances of the case and in view of the special provisions in the Wealth-tax Act, 1957, the Tribunal is right in annulling the assessment on the assessee as a Hindu undivided family ?"
3. Similarly, the only question referred at the instance of the Revenue in Income-tax Reference No, 190 of 1985 for the decision of this court is as follows ;
"Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that, after the coming into force of the Kerala Joint Hindu Undivided Family System (Abolition) Act of 1975, the Hindu undivided family had ceased to exist in Kerala and there cannot be any assessment on a Hindu undivided family ?"
4. There are at least four decisions of this court which have taken the view that the joint Hindu family in Kerala State is put an end to by the Kerala Joint Hindu Family System (Abolition) Act, 1975. Two of them arose under the Wealth-tax Act. They are the Division Bench decisions in WTO v. K. Madhavan Nambiar [1988] 169 ITR 810 and the decision in Sreepadam v. CWT [1985] 155 ITR 318. There are two decisions which arose under the Income-tax Act. They are Shantilal C. Shah v. CIT [1988] 169 ITR 805 and P.G. Narayanaswamy v. CIT [1988] l69 ITR 813. These cases have categorically laid down that, the Hindu joint family ceased to exist by the operation of law, i.e., the Kerala Joint Hindu Family System (Abolition) Act, 1975, with effect from December 1, 1976. Out of the above four decisions, three decisions were rendered by Division Benches.
5. In the light of the above four decisions of this court, we answer the questions referred to us in the following manner.
Income-tax Reference No. 190 of 1985 :
We answer the sole question referred to us in the affirmative, against the Revenue and in favour of the assessee.
A copy of this judgment under the seat of this court and the signature of the Registrar will be sent to the Income-tax. Appellate Tribunal, Cochin Bench.