Income Tax Act, 1961
Section 2: Ins. by Act 17 of 2013, s. 44 (w.e.f. 12013).
2. Ins. by Act 17 of 2013, s. 44 (w.e.f. 12013).
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(b) the successor shall be assessed in respect of the income of the previous year after the date of
succession.
(2) Notwithstanding anything contained in sub-section (1), when the predecessor cannot be found, the
assessment of the income of the previous year in which the succession took place up to the date of
succession and of the previous year preceding that year shall be made on the successor in like manner and
to the same extent as it would have been made on the predecessor, and all the provisions of this Act shall,
so far as may be, apply accordingly.
(3) When any sum payable under this section in respect of the income of such business or profession
for the previous year in which the succession took place up to the date of succession or for the previous
year preceding that year, assessed on the predecessor, cannot be recovered from him, the 1[Assessing
Officer] shall record a finding to that effect and the sum payable by the predecessor shall thereafter be
payable by and recoverable from the successor, and the successor shall be entitled to recover from the
predecessor any sum so paid.
(4) Where any business or profession carried on by a Hindu undivided family is succeeded to, and
simultaneously with the succession or after the succession there has been a partition of the joint family
property between the members or groups of members, the tax due in respect of the income of the business
or profession succeeded to, up to the date of succession, shall be assessed and recovered in the manner
provided in section 171, but without prejudice to the provisions of this section.
Explanation.—For the purposes of this section, “income” includes any gain accruing from the
transfer, in any manner whatsoever, of the business or profession as a result of the succession.
G.—Partition
171. Assessment after partition of a Hindu undivided family.—(1) A Hindu family hitherto
assessed as undivided shall be deemed for the purposes of this Act to continue to be a Hindu undivided
family, except where and in so far as a finding of partition has been given under this section in respect of
the Hindu undivided family.
(2) Where, at the time of making an assessment under section 143 or section 144, it is claimed by or
on behalf of any member of a Hindu family assessed as undivided that a partition, whether total or partial,
has taken place among the members of such family, the 1[Assessing Officer] shall make an inquiry
thereinto after giving notice of the inquiry to all the members of the family.
(3) On the completion of the inquiry, the 1[Assessing Officer] shall record a finding as to whether
there has been a total or partial partition of the joint family property, and, if there has been such a
partition, the date on which it has taken place.
(4) Where a finding of total or partial partition has been recorded by the 1[Assessing Officer] under
this section, and the partition took place during the previous year,—
(a) the total income of the joint family in respect of the period up to the date of partition shall be
assessed as if no partition had taken place; and
(b) each member or group of members shall, in addition to any tax for which he or it may be
separately liable and notwithstanding anything contained in clause (2) of section 10, be jointly and
severally liable for the tax on the income so assessed.
(5) Where a finding of total or partial partition has been recorded by the 1[Assessing Officer] under
this section, and the partition took place after the expiry of the previous year, the total income of the
the successor shall be assessed in respect of the income of the previous year after the date of
succession.
Notwithstanding anything contained in sub-section
When any sum payable under this section in respect of the income of such business or profession
for the previous year in which the succession took place up to the date of succession or for the previous
year preceding that year, assessed on the predecessor, cannot be recovered from him, the 1[Assessing
Officer] shall record a finding to that effect and the sum payable by the predecessor shall thereafter be
payable by and recoverable from the successor, and the successor shall be entitled to recover from the
predecessor any sum so paid.
Where any business or profession carried on by a Hindu undivided family is succeeded to, and
simultaneously with the succession or after the succession there has been a partition of the joint family
property between the members or groups of members, the tax due in respect of the income of the business
or profession succeeded to, up to the date of succession, shall be assessed and recovered in the manner
provided in section 171, but without prejudice to the provisions of this section.
Explanation.—For the purposes of this section, “income” includes any gain accruing from the
transfer, in any manner whatsoever, of the business or profession as a result of the succession.
G.—Partition
171. Assessment after partition of a Hindu undivided family.—
A Hindu family hitherto
assessed as undivided shall be deemed for the purposes of this Act to continue to be a Hindu undivided
family, except where and in so far as a finding of partition has been given under this section in respect of
the Hindu undivided family.
Where, at the time of making an assessment under section 143 or section 144, it is claimed by or
on behalf of any member of a Hindu family assessed as undivided that a partition, whether total or partial,
has taken place among the members of such family, the 1[Assessing Officer] shall make an inquiry
thereinto after giving notice of the inquiry to all the members of the family.
On the completion of the inquiry, the 1[Assessing Officer] shall record a finding as to whether
there has been a total or partial partition of the joint family property, and, if there has been such a
partition, the date on which it has taken place.
Where a finding of total or partial partition has been recorded by the 1[Assessing Officer] under
this section, and the partition took place during the previous year,—
the total income of the joint family in respect of the period up to the date of partition shall be
assessed as if no partition had taken place; and
each member or group of members shall, in addition to any tax for which he or it may be
separately liable and notwithstanding anything contained in clause
of section 10, be jointly and
severally liable for the tax on the income so assessed.
Where a finding of total or partial partition has been recorded by the 1[Assessing Officer] under
this section, and the partition took place after the expiry of the previous year, the total income of the