Law:

Section:

Section 10(2) of Income-tax Act, 1961 – HUF – Amount received as a member – Assessment years 1966-67, 1967-68 and 1969-70 – Assessee contended that she was a member of HUF consisting of her husband and two minor daughters, that certain shares were transferred by her to minor daughters in their capacity as members of HUF – She further contended that shares standing in names of minors were thrown by her into common hotchpot of HUF and, therefore, neither dividend income nor capital gains arising from sale of some of those shares could be assessed in her hands but should be assessed in hands HUF Tribunal rejected assessee's contention – Whether act of assessee, a female, could not be regarded as an act of throwing property into common hotchpot of HUF and thus, dividend income could not be included in total income of HUF – Held, yes FACTS The assessee claimed that she was a member of the HUF consisting of her husband and two minor daughters, that certain shares were transferred by her to her minor daughters in their capacity as members of the HUF. The assessee further declared that she had thrown the shares standing in the names of the minors into the common hotchpot of the HUF. It was, therefore, contended that neither the dividend income nor the capital gains arising from the sale of some of those shares could be assessed in her hands but should be assessed in the hands of HUF. The ITO rejected the contentions on the ground that a single male member along with the female members could not constitute a HUF and that the assessee not being a coparcener could not throw those shares into the common hotchpot. The appeals preferred by the assessee were dismissed by both the appellate authorities. On reference, the assessee conceded that the act of the assessee, a female could not be regarded as an act of throwing property into the common hotchpot of the HUF and, therefore, the dividend could not be included in the HUF's total income, but contended that the matter should be remanded to the Tribunal to decide whether there was a gift by the minors in favour of the HUF because the question referred was comprehensive enough to cover the said point. HELD Whether there had…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492