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TMI Blog1981 (10) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... t-matter of assessment, was the self-acquired property of their father late Maj. Gen. B.L. Kapoor and it did not become the HUF property in the hands of the assessees, the sons. Shri B.L. Kapoor died on18-1-1969. The ITO held that no evidence had been furnished to prove that the assets received on the death of B.L. Kapoor belonged to the HUF. The subject-matter of assessment besides the income from self-occupied property was dividend and interest. 3. The assessees came in appeal before the AAC and claimed that on the death of B.L. Kapoor the two sisters of the assesses, Smt. Sushma Ghei and Miss Rita Kapoor, had relinquished their shares in the estate of their father in favour of the two brothers. The affidavit of Smt. Sushma Ghei along w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heir father in favour of their brothers, it cannot be treated as the property belonging to HUF of two brothers. Since to constitute a joint family there must be more than one member, he held that Jagmohan Kapoor could not form the HUF and had, therefore, to be assessed as individual. For this the AAC relied on the Supreme Court ruling in the case of C. Krishna Prasad v. CIT [1974] 97 ITR 493. 4. As regard Manmohan Kapur, reliance was placed on the Gujarat High Court ruling in the case of CIT v. Dr. Babu Bhai Mansukhbhai [1977] 108 ITR 417 wherein it was held that where a son inherits the self-acquired property of his father, he takes it as joint family property of himself and his sons and not as a separate property. The correct status for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t No. B-43, Defence Colony, on which the disputed property is built. The other document is a copy of the letter written by the deceased Maj. Gen. B.L. Kapoor to the ITO,Poona, furnishing details for computing the income from property for the purposes of income-tax assessments. The details enclosed with this copy of letter are on pages 6-7 of the paper book. On page 9 of the paper book is a photostat of a deposit made by Manmohan Jagmohan Kapur, HUF, with the Motor General Finance Ltd. The learned counsel for the assessee contended that the very entitlement for allocation of this plot of land in Defence Colony to the deceased was the fact that he owned ancestral property inPakistanwhich was left behind on the formation ofPakistan. The dece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... make the allotment of land to the deceased as, a defence personnel, his HUF property. The construction was made by the deceased admittedly with his self-acquired assets and the loan obtained from the defence authorities. During his lifetime he continued to be assessed on the income thereof as an individual and made no claim that his property was his HUF property or that there was any ancestral nucleus. In spite of the fact that we have admitted the entire additional evidence on behalf of the assessee at a later stage even that evidence does not persuade us to hold that this property at B-43, Defence Colony, was the ancestral property of the deceased. It was his self-acquired property and it was so treated by him in his lifetime. We, therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relied on the Gujarat High Court ruling in CIT v. Dr. Babu Bhai Mansukhbhai but there are contrary rulings of the Madras High Court in CIT v. V. R.A. Manicka Mudaliar [1978] 114 ITR 521 which has been considered and approved by the Full Bench of that very High Court in Addl. CIT v. P.L. Karuppan Chettiar [1978] 114 ITR 523 (Mad.). Their Lordships have relied on a number of rulings of Allahabad High Court in CIT v. Rakshpal Ashok Kumar [1968] 67 ITR 164, the Assam Nagaland High Court in Ghasiram Agarwalla v. CGT [1968] 69 ITR 235, and have differed from the Gujarat High Court ruling on which reliance has been placed by the learned AAC. Clearly the consensus appears to be in favour of the view that where a Hindu dies intestate and his prop ..... X X X X Extracts X X X X X X X X Extracts X X X X
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