1984 (1) TMI 88 - AT - Income Tax

Summary

Issues:
1. Acceptance of partition deed due to lack of registration.
2. Validity of partition based on unregistered documents.
3. Admissibility of memorandum of partition.
4. Requirement of registration for partition deeds.
5. Consideration of other evidence to prove partition.

Analysis:
1. The assessee claimed partition through an unregistered deed, but the ITO rejected it due to lack of registration, leading to assessments on the family for the relevant assessment year.

2. The AAC, on appeal, noted a previous partition deed mentioning future urban property partition and concluded that the subsequent unregistered deed effectively partitioned the urban properties. The AAC held that a memorandum of partition, even if unregistered, is admissible in law. The AAC directed the ITO to recognize the partition for the relevant assessment years.

3. The Revenue contended that the unregistered partition deed for urban properties cannot be accepted, while the assessee argued that it was a memorandum of partition not requiring registration. The assessee presented evidence, such as applications for mutation of names and separate assessments by the ITO, to support the partition claim.

4. The tribunal observed that the AAC did not clarify if the unregistered deed was a memorandum of partition or if the urban properties were effectively partitioned. It highlighted that even if the unregistered deed was inadmissible to ascertain partition terms, the fact of partition could be proved by other evidence, citing legal precedents.

5. Referring to legal precedents, the tribunal emphasized that unregistered documents may not establish property rights but can prove the fact of partition through other evidence. As the AAC did not consider all aspects, the tribunal set aside the AAC's order and remitted the matter for fresh consideration in accordance with the law.

In conclusion, the appeals were treated as allowed for statistical purposes, and the cross-objections were dismissed, with the tribunal emphasizing the need to consider all evidence and legal principles when determining the validity of a partition based on unregistered documents.