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Issues:
Assessment of capital gains on properties purchased by two brothers, treatment of purchase amount as gift or loan, clubbing of capital gains in one assessment, rectification of assessment orders. Analysis: The petitioner and his non-resident Indian brother purchased properties separately but were assessed for capital gains as a consolidated single transaction. The Income-tax Officer treated the entire capital gains from the sale of both properties as belonging to the petitioner. A rectification order disallowed excess amount under section 80T. The Commissioner upheld the assessment, presuming the properties were owned by the brother who paid the purchase price. Another assessment on the brother treated the amount advanced as a gift, later overturned to be a loan. The Deputy Commissioner found no evidence of a gift and allowed the appeal, determining the amount was a loan. This decision was not challenged further and became final. The subsequent assessment clarified that the amount advanced for the petitioner's property was a loan from his brother, establishing separate ownership of the properties. The properties were owned separately by the petitioner and his brother, each having paid for their respective purchases. The capital gains from the sale transactions in 1980 should have been assessed separately for each brother, not combined in one assessment as previously done. The earlier assessment orders were deemed unsustainable in light of the subsequent proceedings and final decision on the loan status of the amount advanced. The court allowed the original petition, quashed the earlier assessment orders, and directed the assessments for the year 1981-82 to be completed afresh for the petitioner and his brother separately regarding the capital gains from the property sales in 1980. The rectification order and revisional order were set aside, with a clear instruction to assess the capital gains individually for each brother. No costs were awarded in this matter.
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