9911796707
TMI Blog2001 (7) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... nce the file may be removed from the rolls of Income-tax. Full partition effect in the family on 25-2-1991 with regard to immovable property through Court order issued by the Additional Subordinate Judge, Tirupati I.A. No. 267 of 1991. O.S. No. 201 of 1989, and with regard immovable property, Le. book capital through book adjustment entries among the members of the family. A questionnaire in Form No. 171 is filed separately. The claim of family partition among the members of the family and pass necessary order under section 171 accepting the partition claim.' It was claimed that at the time of partition, the assessee-HUF made the following provisions - (a) Rs. 40,000 For investment in LIC's Jeevan Akshay for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner (Appeals) vide his order dated 21-3-1994 allowed the claim of the assessee that the HUF is totally partitioned. While giving effect to the said order of the Commissioner (Appeals), the Assessing Officer disallowed the claims of assessee for reliefs under section 80CCA of Rs. 40,000, under section 80CCB of Rs. 10,000 and rebate under section 80 on NSCs purchased of Rs. 25,000. Assessee filed a petition under section 154 seeking rectification, but the Assessing Officer rejected the said petition of the assessee, on the ground that the relevant investments were made by the assessee after the partition, though before the end of the financial year on 31-3-1991. The Assessing Officer mentioned that the income has been computed only u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ample, in terms of section 80CCA, the payment to an annuity plan has to be made within the previous year. Under section 80CCB, the units of a mutual fund have to be acquired in the previous year. Similarly, for availing the rebate under section 88, subscription to National Savings Certificates has to be made again in the previous year. The only other condition to be satisfied is that for eligibility to rebate under section 88, the amounts paid or deposited should be out of income chargeable to tax. As it is not doubted that the latter condition is satisfied and as all the investments in question were made within the previous year, i. e. the year ending on 31-3-1991, it is claimed that the revenue authorities erred in denying the reliefs und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he claim has been extracted hereinabove. This claim has been accepted by the Department. The investments in question were made only after 25-2-1991, but some time before 31-3-1991. When the total partitionis effected, a HUFin terms of section 171 of the Act ceases its existence. This is also the ratio of the decision of the Apex Court in the case of Joint Family of Udayan Chinubhai v. CIT [1967] 63 ITR 416, wherein it has been held as under : 'Held (1) that L, U, K and A constituted a group between them and C, there was partition in definite portions. The order passed by the Income tax Officer, Bombay, under section 25A(1) was a valid order which he was competent to make. Thereafter, the original Hindu undivided family had no existence in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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