HUF Partition u/s 171

Dear Mr. Surana,

What you have mentioned above is definitely a total partition u/s. 171 of I.T. Act. 

What constitutes a 'Partial partition' has been explained  under Section 171 itself. 

dear querist

If i understand your query well , it explains that the Karta and his wife wants to retain their life interst in the property and after the death it will go to the son. Thus it is an contingent happening envisaged. In respect  ancestral properties which is the subject matter of partition, courts have held even the child in womb has right over the property. Thus the the Karta cannot make any settlement deed on contigent hapening and determine the devolution of the property to his son alone. it is an ancestral property and hence it is diferenst from indiviudal aqured property and the Karta cannot at this stage decide the furture devolution.

Explanation  (a)(ii) to section 9 satges where the property does not admit a physical divison sthen such dividion as the prperty admints of, but a mere severance of status shall not be deemed to be partiton.

Here it is only mere severance of status and not aboslute admition of physical divison. Hence it is not full partition in my opinion.

Adv.A.R.Sathyan.

If the partition has happened in respect of all the members and all the assets, it is total partition as recognised u/s 171. Physical partition of property, in my opinion, is neither necessary nor warranted once the share of all the members have been identified and rights have been devolved upon them.

The rights acquired by parents in HUF property in this partition can be passed on to son by testamentary devolution. However, same should not form part of partition deed otherwise the partition can be seen as a colourable device based on contingent happening. 

Please file an application before the AO for passing an order of total partition u/s 171.