Deepan Pulin Mehta Vs ITO (ITAT Ahmedabad)
PAN Cannot Override Legal Ownership- ITAT Blasts Revenue for Taxing Individual Instead of HUF/Trust
In this case, Assessee was taxed on alleged capital gain of Rs.33,24,000/- on sale of an immovable property. He did not file return, as he consistently stated that the property did not belong to him in his individual capacity but was owned by his HUF & a Trust as per the Will of his late father. The Will clearly bequeathed 50% of the property to Assessee’s HUF & 50% to a family Trust. The sale deed itself named the HUF & the Trust as the sellers, & sale consideration was received directly in the bank accounts of HUF & Trust. All documentary evidence – Will, sale deed, bank statements – were furnished.
However, AO rejected these evidences solely on the ground that PAN of the individual was quoted during registration, & held the sale to be made by the Assessee in his personal capacity. CIT(A) astonishingly agreed that the property legally belonged to HUF & Trust, yet still confirmed the addition only because Assessee had not filed return in HUF capacity. CIT(A) even admitted that Assessee signed as Karta/Trustee but used individual PAN, & still confirmed the addition in individual hands.
