Law: Income Tax Act, 1922

Section: 33(4)

Section 254 of the Income-tax Act, 1961 [Corresponding to section 33(4) of the Indian Income-tax Act, 1922] - Appellate Tribunal - Powers of - Assessment years 1946-47 to 1948-49 - Whether Tribunal has jurisdiction to direct status of an assessee to be changed and to determine correct status provided there is material on record to determine correct status in which assessee should be assessed - Held, yes Section 4 of the Income-tax Act, 1961 (Corresponding to section 3 of the Indian Income-tax Act, 1922) - Hindu undivided family - Assessable as - Assessment years 1946-47 to 1948-49 - Whether once partial partition of HUF is accepted as being genuine and not a colourable or sham transaction, share of capital of each such coparcener thereafter ceases to be joint family asset and becomes his individual asset de hors family, and thereafter it is not possible to say that nucleus for new partnership business started later on came from HUF funds - Held, yes - Whether, therefore, share income derived by investment of such funds in partnership business cannot be included in assessment of HUF, unless it can be included in assessment of HUF, unless it can be shown that individual members who derived share income has blended it with income of smaller HUF or they are nominess or benamidars for their family - Held, yes FACTS P had died in 1916, leaving two sons, PL and SM. PL had two sons, CL and ML. SM had no male issue and the aforesaid ML was adopted by him. The family of PL-SM owned business and it also had house properties. SM relinquished his interest in the family on 27-3-1944. On 31-3-1944, the was a partial partition between CL, now representing one branch of the family, and ML, the other branch of SM. The house properties were divided into three lots. Lot "A" went to CL and his three sons, RP, OP and CP (minor). Lot "B" fell to the share of ML and his five sons, and the property comprised in lot "C" remained joint till the 25-8-1947. The aforesaid business of the family was partitioned by division of capital in the books of the firm. The capital which fell to the share of CL was further divided amongst himself and his two adult sons, RP and OP, in the ratio of 2 : 1…

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