INCOME TAX OFFICER v. ONKAR NATH KISHAN CHAND
[Citation -1985-LL-0528-4]
| Citation | 1985-LL-0528-4 |
|---|---|
| Appellant Name | INCOME TAX OFFICER |
| Respondent Name | ONKAR NATH KISHAN CHAND |
| Court | ITAT |
| Relevant Act | Income-tax |
| Date of Order | 28/05/1985 |
| Assessment Year | 1974-75 |
| Judgment | View Judgment |
| Keyword Tags | individual property • capital gain |
| Bot Summary: | The assessee is an HUF. The dispute before the ITO was whether the capital gain as a result of sale of Ihata and the shops was assessable in the hands of the assessee or to the HUF of Onkar Nath Kishan Chand separately. AAC after considering the contention of the assessee and the evidence on record held that the said property did not belong to the assessee but it belonged to the smaller HUFs of Onkar Nath and Kishan Chand, and the capital gains, if any was to be taxed in their hands. AAC erred in holding that the capital gain arising out of the sale of the property could not be taxed in the hands of the assessee HUF known as Onkar Nath Kishan Chand. AAC overlooked the fact that the property was purchased out of the funds belonging to the assessee HUF and there was no partition so far between the coparceners of the HUFs of Onkar Nath and Kishan Chand. From the material on record it also comes out that Onkar Nath and Kisan Chand purchased the property in their individual capacity. So the property in question is the property of the smaller HUFs of Onkar Nath and Kishan Chand as discussed above. Onker Nath and Kishan Chand purchased this property and subsequently they sold it as co-owners representing their respective HUFs thus the capital gain was earned by the respective HUFs of Onkar Nath and Kishan Chand and not he bigger HUF. Since the ld. |