INCOME TAX OFFICER, CALlCUT vs SMT. N.K. SARADA THAMPATTY

The Supreme Court held that under Section 171 of the Income Tax Act, 1961, a Hindu Undivided Family (HUF) is deemed to continue as such unless a partition is proved. The Court clarified that the onus is on the assessee to demonstrate the disruption of HUF status, and without a physical division of properties, the HUF character remains intact for tax purposes. The Court overturned the High Court's ruling, emphasizing that the income derived from properties continues to be taxed as HUF income unless a valid partition is established.