The Tax Publishers2020 TaxPub(DT) 4704 (Bang-Trib)

INCOME TAX ACT, 1961

Section 54F

Where merely because sale consideration was distributed amongst assessee her mother and 2 sisters, will not dissolve the right of legal heirs in the total joint property under Hindu Succession Act. Thus, assessee's share would be decided for the purpose of capital gain after verification of share received by said legal heirs from sale price of said land.

Capital gains - Deduction under section 54F - Sale of joint property -

Assessee filed appeal relating to share in sale consideration received claiming that she was entitled to 1/6th share, in the total property under Hindu Succession Act and that, they have sold the joint property along with their Mother, 1 sister and sons of their Brothers. AO from documents filed by assessee, however, observed that, assessee was entitled to 1/4th share and accordingly considered sale consideration in the hands of assessee's being 1/4th share of total sale consideration. Held: On perusal of sale deed placed, it was noted that, original vendors to the agreement, were assessee along with her mother and 2 sisters. It was also recorded in sale deed that, by virtue of judgment and decree, widow of Late M. Murthy and her son Prakash were also considered to be holding share in the said property sold by assessee, her mother and 2 sisters. Merely because sale consideration was distributed amongst assessee her mother and 2 sisters, will not dissolve the right of widow of Late M. Murthy and her son Prakash. However, amount disbursed to these legal heirs was not clear from the sale agreement filed in the paper book. Under such circumstances it was necessary to send back this issue to AO for verification in respect of share received by widow of Late M. Murthy and her son Prakash from sale price of land and accordingly compute share received by assessee for purposes of capital gains.

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2015-16


INCOME TAX ACT, 1961

Section 54F

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT

TaxPublishers.in

'Kedarnath', 7, Avadh Vihar, Near Nirali Dhani,

Chopasni Road

Jodhpur - 342 008 (Rajasthan) INDIA

Phones : 9785602619 (11 am - 5 pm)

E-Mail : mail@taxpublishers.in / mail.taxpublishers@gmail.com