Assessing Officer has not disputed the fact that Sh. Amarchand had expired on 15.05.1995 and there was no occasion to sell the land by him in his individual capacity. It is also not in dispute that the land was sold by Sh. Babu Lal along with his 3 brothers and his mother Smt. Chunni Devi. The Coordinate Bench in its order dated 25.03.2011 has given a finding of fact which has not been disputed by the either side and in fact the said decision of the Coordinate Bench has been relied upon by both the parties. As noted above, the Coordinate Bench has confirmed the finding of fact as given by the ld. CIT(A) that the agricultural land sold in question belonged to the HUF consisting of Sh. Sukhdev and his mother and 3 brothers. Therefore, what has been sold was ancestral agricultural land which belongs to the HUF and it has been brought to tax in the hands of HUF after the death of Sh. Amarchand. There is no partition of HUF and there is no finding of any partition given by the Assessing Officer u/s 171 of the Act. After the death of Sh. Amarchand, HUF continues to exists and represented by his elder son Sukh dev who became the Karta of HUF and the other coparceners are Smt. Chunni Devi wife of Late Sh. Amarchand, and Sh. Babu Lal, Sh. Ganpat lal and Sh. Netrapal, all sons of Late Sh. Amarchand. Though the HUF is still known as M/s Amarchand HUF, in essence, it is the HUF which consists of Sh. Sukh dev as Karta and coparceners are Smt. Chunni Devi, Sh. Babu Lal, Sh Ganpat lal and Sh. Netrapal. The assessment, therefore, has rightly been done in the name of HUF consisting of abovesaid persons. In light of above, we do not see any infirmity in the order of the Assessing Officer in bringing to tax the long capital gains arising on account of sale of agricultural land in the hands of the HUF consisting of Sh. Sukh Dev, Smt Chunni Devi, Sh. Babu Lal, Sh. Ganpatlal and Sh. Netrapal.
FULL TEXT OF THE ITAT JUDGMENT
ORDER
PER SH. VIKRAM SINGH YADAV, A.M.
This is an appeal filed by the assessee against the order of ld. CIT(A)- III, Jaipur dated 21.03.2016 wherein the assessee has taken the following grounds of appeal:
“1. That on the facts and in the circumstances of the case, the Learned Assessing Officer as well as Learned CIT(A)-III, Jaipur have grossly erred in treating Sh. Amarchand HUF as sole owner of agricultural land so sold, whereas the name of Sh. Amarchand was removed from Jamabandhi on his death. The land was inherited by the wife of Sh. Amarchand & his four sons. Thus question of land belonging to Sh. Amarchand does not arise. Thus assessment completed in the name of Sh. Amarchand HUF & confirmed by the Learned CIT(A) deserves to be quashed.
2. That the learned Assessing Officer Ward 7(2), Jaipur has grossly erred in law as well as in facts in completing assessment u/s 147/143(3) of the I.T. Act, 1961 in the status of HUF of M/s Amarchand and also confirmed by the Learned CIT(A)-III, Jaipur, whereas the sale proceed of agricultural land belonged to respective HUF of Sh. Babulal, Sukhdev, Ganpat Lal, Netrapal & Smt. Chunni Devi and as such assessment so completed deserves to be cancelled.
3. That on the facts & in the circumstances of the case, the Learned Assessing Officer Ward 7(2), Jaipur has grossly erred in completing assessment u/s 147/143(3) of the I.T.Act, 1961 in the status of HUF of Late Sh. Amarchand & confirmed by the Learned CIT(A)- III, Jaipur, whereas after death of Sh. Amarchand, the name of Sh. Babulal, Sukhdev, Ganpat Lal, Netrapal & Smt. Chunni Devi have been entered in the Jamabandhi on 14.05.1996 & name of Late Sh. Amarchand was removed. Therefore the agricultural land so sold belonged to respective HUF of Sh. Babulal, Sukhdev, Ganpat Lal, Netrapal & Smt. Chunni Devi in her individual capacity. Thus assessment completed in the name of M/s Amarchand (HUF) deserves to be cancelled.
4. That on the facts and in the circumstances of the case the Learned Assessing Officer Ward 7(2), Jaipur has grossly erred in treating the two sale proceed of agricultural land at Rs. 19875000/- (15778000 + 4097000) belonged to M/s Amarchand HUF & confirmed by the Learned CIT(A)-III, Jaipur, whereas the sale proceeds had been received by the respective HUF of Sh. Babu Lal, Sukhdev, Ganpat Lal, Netrapal & Smt. Chunni Devi in her individual capacity and also accepted by the Sub-Registrar, Sanganer, Distt. Jaipur as per details given below. Had there been any doubt about share received by the respective HUF, the Sub-Registrar would not have registered the documents.
