Law:

Section:

Section 256 of the Income-tax Act, 1961 - Reference - General - For relevant year, assessee filed its return in status of HUF - Tribunal rejected assessee's claim for deduction under section 54, since it was a HUF - On reference, assessee contended for first time that half of interest in house sold was separate property of its karta and owing to legal position not clear at time of filing of return, that distinction was not put forward and return was filed as a HUF - Whether assessee's contention, which would change entire basis of proceedings taken till now, could neither be permitted by present Court nor could it be done by Tribunal under section 260 - Held, yes Section 54 of the Income-tax Act, 1961 - Capital gains - Profit on sale of property used for residential house - Whether assessee, being a HUF could not claim benefit of exemption under section 54 - Held, yes Words and phrases - 'Assessee or a parent of his' as occurring in section 54 of the Income-tax Act, 1961 Facts The assessee-HUF owning a house, being ancestral property, sold the same on 4-12-1975 and purchased another property on 9-12-1976. It claimed that since the purchase of the property was made within one year of the sale, it was exempted from capital gains under section 54. The ITO rejected the assessee's plea on the ground that the purchase was not within the time prescribed by section 54. On appeal, while the Tribunal was of the opinion that the purchase was within the time prescribed by section 54, it dismissed the assessee's claim on the ground that the assessee being a HUF, could not take advantage of section 54. On reference, the assessee raised a new contention that half the interest in the said house was the separate property of the karta of the HUF inasmuch as it had devolved upon him on his father's death under section 8 of the Hindu Succession Act, 1956 and owing to the legal position not clear at the time of filing the return, this distinction was not put forward and the return was filed as a HUF. Held The assessee should not be allowed to go back and change the very return which he had filed and change the entire basis of the assessment. Even before the Tribunal the contention…

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