Case Law Details
Shri B.S. Venkatesan Vs ITO (ITAT Chennai)
Conclusion: An individual coparcener who was shown as owner in the registered sale deed could not be assessed for capital gain arising in respect of the property belonging to Hindu Undivided Family.
Held: In the present case, assessee being one of the coparceners, the property was purchased by his father in the name of the assessee and his brother. On the date of purchase, assessee and his brother were admittedly minors and they had no independent source of income. Hindu Undivided Family is not a legal entity under the common law. Therefore, it could not hold any property / title over the immovable property. Hence, the registered sale deed for purchase of the property in question had to be in the name of the assessee and his brother. However, under the Income-tax Act, Hindu Undivided Family is a separate and independent assessable unit. Since the property belonged to Hindu Undivided Family, therefore, the gain arising out of sale of property had to be assessed only in the hands of Hindu Undivided Family and definitely not in the hands of individual coparcener. There could not be any capital gain assessment in respect of the property belonging to Hindu Undivided Family in the hands of the assessee.
FULL TEXT OF THE ITAT JUDGMENT
This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -13, Chennai, dated 18.09.2017 and pertains to assessment year 2010-11.
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