Law:

Section:

Section 4 of the Income-tax Act, 1961 - Hindu undivided family - Assessability of - Assessee and his sister inherited a house property in equal shares on their father's intestate death on 4-9-1970 - Assessee sold entire property after obtaining release from his sister of her half share on payment of certain consideration - ITO found that amount for obtaining release deed was drawn from individual funds of assessee and he, accordingly, assessed whole capital gains arising from sale of said property in hands of assessee in his individual capacity - AAC, though agreed that said consideration for release deed had come from assessee's individual funds, held that said capital gain was to be assessed in HUF's hands as assessee had thrown said property in common hotchpot of HUF - Whether in view of facts (i) that inspite of categorical findings of ITO and AAC that impugned consideration for release deed had come from assessee's individual funds, Tribunal ignoring such findings held that there was no evidence to show that assessee paid amount out of his individual funds, and (ii) that as regards other half share of said property devolved on assessee, Tribunal did not consider applicability of Taxation Laws (Amendment) Act, 1970 which was clearly applicable to present case, matter was to be referred back to Tribunal for a fresh consideration - Held, on facts, yes FACTS The assessee and Ms sister succeeded to half share each in a house property on their father's intestate death on 4-9-1970. Then after paying certain money to his sister, the assessee obtained a release deed in respect of her half share in the said property. In the relevant assessment year the assessee sold the said property and ITO held that the assessee having become entitled to the entirety of the said property, the entire capital gains arising on such sale should be assessed in his individual capacity. On appeal, the AAC held that the property derived by a Hindu from his male ancestors, consisting his lineal ascendants, should be treated as belonging to the HUF, consisting of such person and his son and that even otherwise, as on 1970, it was open to a Hindu to throw his self-acquired property into the…

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