Sale of Land of HUF after Death of Karta is assessable in HUF’s hand

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:

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