Huf assets & alimony/maint

rajiv_lodha (Querist) 03 October 2012 This query is : Resolved
I have HUF (me, wife and 6 yrs old girl child) account. It generates annual income via commodity trading, IT returns are filed though total income is less than taxable limit.
Now, I am fighting divorce case & maint cases against wife, child is in my custody. Question is
1) HOW THE HUF ASSETS ARE DEALT WITH WHILE COURT DECIDES MAINT. OR ALIMONY
2) IS IT CONSIDERED AKIN TO A JOINT INVESTMENT BY HUSBAND+WIFE............SO HALF OF ASSETS FALL IN HER KITTY AUTOMATICALLY.
3) FROM PAST 2 YRS I HAVE STOPPED INVESTMENT INTO HUF FEARING FOR LOSS D/T GENDER BIASED LAWS, CAN I RESUME THIS INVESTMENT IF THERE IS NO REAL FEAR OF LOSING THE MONEY TO WIFE EASILY IN THESE COURT CASES?

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Tajobsindia (Expert) 03 October 2012
1. For assessment proceedings one has keep into consideration S. 171 ITA where it has been clearly prescribed that till the marriage subsists HUF will be assesseed as an HUF. Memebrs will be severally and jointly liable for tax.

Link:
http://law.incometaxindia.gov.in/dittaxmann/incometaxacts/2008itact/section171.htm

2. If the child is with natural father and according to child age slab either of them (natural mother - natural father) or both have capacity to form a FAMILY and as such HUF will remain in existence.

3. Once divorce happens she can demand share. However, partial partition is not recognised in HUF.

4. A Hindu female is not a coparcener and has no qualification to become the manager of the family. But in HUF consisting of the mother and her minor son the mother can represent the family as the guardian and assessment and recovery proceedings may be taken against her in that capacity

ref.: Sushila Devi Rampuria vs. ITO (1960) 38 ITR 316.

5. Suppose, in a case if wife gets custody of child upon divorce decree natural father is left alone then status of HUF wiil then come to an end. However, any thing that may remains in HUF it will become husband's individual property and whenever he would get remarried he can transfer back the said assets to the new HUF.

6. It is purely Karta choice to stop temporary or further his investment in stock trading keeping in view peculiar long term situations he has fallen himself into.

rajiv_lodha (Querist) 04 October 2012
Thanx dear 4 putting light. One small query remains:
If at any stage I have to give affidavit in court to declare my assets, shud i include HUF in it or not as per law?