Sudhindra Mohan Guha, J. - (1.) In this reference under Section 256(1) of the I.T. Act, 1961, the following question was referred to this court: "Whether, on the facts and in the circumstances of the case, and on a proper interpretation of the deed of partition, the Appellate Tribunal was justified in holding that a partial partition within the meaning of Clause (b) of the Explanation to Section 171 of the Income-tax Act, 1961, had taken place amongst the members of the assessee-Hindu undivided family on June 30, 1964?"
(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 : -------------------------------------------------------------------------------- 1. Hoshiarilal, Sabitri Debi & Sanjoy minors & unmarried daughters (smaller HUF) Allotments 25% share & capital in Hanuman Rice & Oil Mills, Dhupguri and Rs. 10,000 credited by debiting Shyamsundar & Mohanlal, Rs. 5,000 each. 2. Shyam Sundar Kalyani (Minor) 12% share & 50% of the capital in Sree Bajrang Rice Mill, Maynaguri & by debiting Rs. 5,000. 3. Mohanlal Kalyani (Minor) 12% share & 50% of the capital in Bajrang Rice Mill, Maynaguri & by debiting Rs. 5,000. --------------------------------------------------------------------------------;