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TMI Blog2015 (11) TMI 1837X X X X Extracts X X X X X X X X Extracts X X X X ..... e A.P.Began HUF. 2. Brief facts are that assessee Began HUF consists of Karta Shri A.P.Began, his spouse, son and daughter. After the demise of A.R.Pandurangan, father of the assessee the assessee along with his two brothers A.P.Oree and A.P.Nambi and their sister Smt. Nangai sold the property which stood in their father's name lateA.R.Pandurangan and sale proceeds were distributed among themselves. The assessee HUF filed return of income for the assessment year 2008-09 on 28.07.2008 admitting total income of Rs. 72,598/- after claiming exemption under section 54F of the Act out of the capital gain disclosed by the assessee HUF on the share in the property which the HUF got around Rs. 63.09 lakhs. The assessment was completed under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no physical partition of land in view of the provisions of section 171 of the Act. The assessee preferred appeal before the Tribunal and the co-ordinate Bench by order dated 30.10.2013 in ITA No.1006/Mds/2013 remitted the matter back to the file of the Commissioner to consider the issue afresh by considering the explanation of the assessee in accordance with law for the reason that no explanation was filed by the assessee before the Commissioner as nobody appeared in the proceedings before him. The co-ordinate Bench further observed that since the fact of whether late A.R.Pandurangan HUF was assessed to income-tax or not is not coming out from the assessment order thus the matter was restored to the file of the Commissioner of Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the learned Commissioner at para 5 of his order, still he holds that income should be assessed in the hands of Estate of late A.R.Pandurangan HUF who passed away in 2003. Counsel submits that CIT concluded that larger HUF subsists, therefore it has to be assessed in the hands of late A.R.Pandurangan. Counsel submits that since late A.R.Pandurangan is not assessed to tax earlier, the provisions of section 171 have no application and in view of the memorandum of oral partition executed among the children of late A.R.Pandurangan demarcating the percentage of share in the property gain has to be assessed in their hands and therefore there is no justification in holding that gain has to be assessed in the hands of late A.R.Pandurangan e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose of roping in cases of joint families which had hitherto been assessed. It is not possible to extend that fiction :beyond the field legitimately intended by the statute. The fiction in section 171(1) must necessarily be confined to the purpose for which it was specified in that section and for no other purpose. The expression "hitherto assessed" occurring in section 171(1) is significant. It makes 11 clear that only a Hindu undivided family which had suffered tax assessment in the past could be deemed to continue to be a Hindu undivided family till an order of partition under section 171(1) is recorded" 9. In the case on hand, no evidence has been brought on record to suggest that late A.R.Pandurangan HUF has been assessed. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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