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Issues: Ownership of property for income tax assessment.
The High Court of Madras delivered a judgment on a case involving the ownership of a property for income tax assessment. The property in question was originally owned by an individual who passed away, and legal heirs mortgaged the property to discharge debts. The property was later purchased in a court auction by a family friend. Subsequently, there were legal disputes regarding the ownership of the property, with the assessee claiming that the property was purchased benami for her benefit. A compromise decree in 1972 resulted in the assessee becoming the absolute owner of the property. The Income-tax Officer initially assessed the income from the property in the hands of the father-in-law of the assessee but later assessed it in the hands of the assessee as a protective measure. The Tribunal, after considering the facts and the compromise decree, held that the assessee is the rightful owner of the property and that the income should be assessed in her hands for the relevant years. The Tribunal emphasized that the assessee was in possession of the property and had sold a portion of it, investing the proceeds. The High Court agreed with the Tribunal's decision, stating that the assessing authorities' findings were not acceptable against the compromise decree. The Court concluded that the assessee is the owner of the property, and no legal question arose from the Tribunal's order. Therefore, the Court ruled in favor of the assessee, with no costs awarded. ---
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