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TMI Blog2024 (7) TMI 1046X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee paying Rs. 102.50 lakhs within the meaning of Section 45 / 47(i) of the Act? HELD THAT:- With the passing of the preliminary decree and for that matter, with the passing of any final decree, the partition does not reach its logical conclusion. It is only with the allottees of the shares putting in possession of the respective property, the partition is complete. Till then, the shares themselves are liable to be varied on account of the intervening events, if any. Whatever the directions that the civil court gives and whatever the payment that would be made by the parties to each other or the variances in the size of shares by metes and bounds, till the partition proceedings reach the logical conclusion, are only the process of adjust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... J.M: Aggrieved by the order dated 30/05/2023 passed by the learned Commissioner of Income Tax (Appeals)- National Faceless Appeal Centre (NFAC), Delhi ( Ld. CIT(A) ), in the case of Bharat Kumar Ramani ( the assessee ) for the assessment year 2016-17, assessee preferred this appeal. 2. Brief facts of the case are that the assessee along with his mother and six brothers and sisters succeeded to the property, originally purchased by his father late Shri Mohan Lal Ramani vide Registered Sale Deed dated 14/12/1965, on the demise of his father on 22/03/1995. Subsequently, a suit for Partition was filed vide O.S. No. 2829/2010 on the file of the First Additional Senior Civil Judge, City Civil Court Hyderabad. During the pendency of the suit, on d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arising in respect of the 6/8th share in respect of which the assessee paid Rs. 102.50 lakhs to the co-sharers as short term capital gains on the premise that the assessee acquired the share of others under the compromise deed. Learned CIT(A), however, determined market value of the property as pleaded by the assessee and on that aspect, assessee has no dispute. 5. Aggrieved by the findings of the learned CIT(A) in respect of the treatment of the capital gains relatable to the 6/8th shares as short term capital gains, assessee preferred this appeal. The sole issue in this appeal, as argued by the learned counsel, therefore, is whether there is any transfer of property from the other co-sharers to the assessee in respect of such 6/8th share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions made on either side. It seems the learned Assessing Officer and learned CIT(A) are under the impression that on declaration of the respective shares, namely, 2/8th to the assessee and 6/8th to the coparceners, the process of partition reached its logical end and, therefore, the compromise decree resulted in the assessee acquiring the shares of others. However, this understanding is incorrect. With the passing of the preliminary decree and for that matter, with the passing of any final decree, the partition does not reach its logical conclusion. It is only with the allottees of the shares putting in possession of the respective property, the partition is complete. Till then, the shares themselves are liable to be varied on accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igations of other defendants also. It deals with the rights and obligations of the parties. On a careful perusal of the same, we have no doubt in our mind that it is the record of adjustment of equities and not a document recording the simple payment and acquisition of the rights of the 6/8th shareholders in one item of the property. It is only the compromise decree that gives a quietus to the issue of partition and, therefore, the assessee must be deemed to have acquired the property under such decree on devolution of the same from the father, but not through the other coparceners. Such an event gives rise to the legal fiction that when the assessee alienated the property on 21/01/2016, the assessee did so while in the shoes of the other c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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