Law:

Section:

Section 4 of the Income-tax Act, 1961 [Corresponding to section 3 of the Indian Income-tax Act, 1922] - Income - Chargeable as - Assessment year 1958-59 - Assessee was karta of a joint Hindu family consisting of himself and his two sons - Family was doing business in money lending and dealing also in property - In 1951 there was a partition of family assets in which assessee was allotted some house properties and cash - From 1951 assessee did not acquire any property and also stopped money lending - In 1956 assessee sold said property and claimed that excess realisation over purchase price was a capital accretion not chargeable to tax - ITO being of view that assessee should be treated as a dealer in properties, held that excess realisation was a revenue receipt liable to tax - Assessee had opened his own books of account and continued to deal with all assets taken over in same manner as before, that assessee had dealt with sales of some of these properties from assessment year 1953-54 on footing that they constituted only his stock-in-trade and had duly transferred profit or loss therefrom to his Adayam account from time to time and that property in question had not also been shown to be any different from rest of properties taken over at time of partition - Whether on facts, it could be concluded that assessee was a dealer in properties or that because properties allotted to share of assessee were entered in his account books subsequent to partition, and income from some of properties so allotted was utilised for money-lending business in first year after partition, properties were treated as stock-in-trade in money-lending business - Held, no - Whether, therefore, assessment of excess realisation on sale of house properties as revenue receipt was not valid in law - Held, yes FACTS The assessee was the karta of a joint Hindu family consisting of himself and his two sons. The family was doing business in money-lending and dealing also in property. On 1-6-1951, there was a partition of the family assets at which the assessee was allotted some house properties and cash balances. From 1951 the assessee no longer acquired any property. In 1952, he stopped…

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