Case Law Details
Rajkumar C (HUF) Vs DCIT (ITAT Bangalore)
ITAT Bangalore held that HUF was disrupted / partitioned as on the date of assessment order and hence the assessment order in the status of HUF is invalid.
Facts-
A search and seizure operations were conducted in the case of one Shri K.J. Purushotham Reddy. During the course of search operations, the residential premises of Shri C.Rajkumar (kartha of assessee), were also covered. It was stated that as a result of search and seizure operations, certain documents belonging to the assessee were found and seized by the Investigation Wing of the Department. During the course of search operations, it was stated by Shri Rajkumar who is the kartha of the present assessee i.e. Rajkumar C, HUF that regular returns of income were being filed in the individual capacity and no returns were filed in the status of ‘Rajkumar C, HUF’, assessee herein. The assessment were completed in the hands of Shri Rajkumar, in his individual capacity u/s 143(3) by bringing to tax the income earned from the activity of real estate and gains arising out of sale of land etc.
CIT(A) accepted the contention of the assessee that the income belonged to HUF and not to individual. The CIT(A), however, directed the AO initiate assessment proceedings to tax this income in the hands of Rajkumar C, HUF.
Please become a member. If you are already a member, login here to access the full content.
Author Bio
