A Hindu undivided family did not file an income tax return. Who shall be deemed guilty of the offence? What is the defence available to him?

Question: A Hindu undivided family did not file an income tax return. Who shall be deemed guilty of the offence? What is the defence available to him? [RJS 1989]

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Answer

The joint and undivided family has hitherto been the normal condition of Hindu Society. Manusmriti recommended that the eldest male member should take over the rights and duties of patrimony.

The institution of a joint Hindu family is very old. It is a unique institution having no parallel in the whole world. It has evolved from the ancient patriarchal family which can be described as the earliest unit of human society. The head of such a unit is always, in practice, despotic and enjoyed the highest respect. The induction of the coparcenary system considerably whittled down the absolute power of the head.

But the joint family with its unique characteristics remained the basic tenet of Hindu society. It was considered to be the most characteristic way of Hindu life inevitable for the cohesive development of the society. Hence it led to a presumption that every Hindu family is a joint Hindu family. Hindus are accustomed to living in joint family units.

A joint Hindu family, at best, may be defined by stating the jointness of members of whom it is made up. Thus, it consists of all persons lineally descended from a common ancestor and including their wives and unmarried daughters. A daughter ceases to be a member of her father's family upon marriage and becomes a member of her husband's family. The existence of a joint estate is not an essential requirement to constitute a joint family, there can be a joint family even in absence of an estate. Generally, a Hindu family is regarded as joint not only in the estate but also in food and worship.

Ordinarily, the right to management of the family vests in the eldest member of the joint family, such member is considered the head and is known as Karta. A Karta, the head of the family is responsible for the Hindu undivided family. The powers of the Karta in a joint family are not larger than a coparcener in the family nor has the Karta larger right to enjoy the same than any other coparcener. He does not get any remuneration for the services he renders to the family.

But Karta has many powers as the head of the family. Among his many extrinsic powers, the Karta has the power to manage the revenue and expenditure of the joint Hindu Family and he has the power to legally represent the family in any legal or such proceedings.

The Karta is the representative of the Hindu Joint Family on all legal, social, religious, and revenue-related matters. He has the right to represent the family in all the legal proceedings and suits, as was mentioned in Rajayya v. Singa Reddy, AIR 1956 Hyd 200.

In the present question, the Karta of the Hindu Joint family will be guilty of the non-filing of the income tax returns. He will be responsible for the same as per Section 278C of the Income Tax Act, 1961.

Under Section 278C of the Income Tax Act, 1961 if any offence is committed by a Hindu Undivided Family, the Karta shall be deemed guilty for the offence and shall be held liable, proceedings will be initiated against him, and he will be punished accordingly.

However, if Karta proves that the offence was committed without his consent or knowledge or that he has exercised all due diligence to prevent it, then he shall not be liable for the offence. Also if it is proved that the offence committed by the family has been done by any other or his consent, then such a member will be held liable for that offence and will be punished accordingly.

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