| Question And Answer | |
|---|---|
| Subject: | HUF |
| Category: | Income-Tax |
| Querist: | BKS |
| Answered by: | Law Intern |
| Tags: | HUF, Partial partition, Unequal Partition |
| Date: | May 19, 2025 |
Is unequal partition possible under tax laws ?
Is order u/s 171 mandatory ?
any case laws ?
There is no statutory prohibition against an unequal partition though the onus will be high on the assessee to prove that it is done for legitimate and genuine reasons and not for tax planning reasons.
Order u/s 171 is mandatory.
The judgement of the Supreme Court in M. V. Valliappan explains the concept of partial partition and will throw light on the subject.
Please also see the answer in https://itatonline.org/digest/qa/is-unequal-partition-of-huf-permitted/ where more case laws are given.
Disclaimer: This article is only for general information and is not intended to provide legal advice. Readers desiring legal advice should consult with an experienced professional to understand the current law and how it may apply to the facts of their case. Neither the author nor itatonline.org and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this article nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of itatonline.org