9911796707
TMI Blog1985 (2) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... ground that it was assessable in the hands of an AOP formed by them. 2. The admitted facts are as follows : One Shri Gururajachar died on 9-2-1969 leaving behind him his two wives, Smt. Bhoomiamma and Smt. Sunandamma, the assessees before us. He died intestate and one of the assets of his estate was the premises in which hotel business was carried on in the name of Neo Mysore Cafe. After his dea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iduals were restored to the ITO for making fresh assessments and they are still pending. In the previous year ended 31-3-1976 corresponding to the assessment year 1976-77 the business was itself sold away under a deed dated 30-10-1975. Returns were filed in the status of an AOP as well as for individual income of the two assessees. It appears that no assessment was made in the status of an AOP but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount as computed in the hands of the AOP could be added. On the other hand, the revenue also has appealed firstly to contend that the capital gains was rightly computed on the basis of the market value of the property and not the actual consideration received. The revenue contests the appeals of the assessees on the ground that the capital gains arose to the two individuals as tenants-in-common ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a voluntary association of persons to earn income out of the business asset, and, therefore, the income earned from Neo Mysore Cafe belonged only to the AOP. When that asset which belonged to the AOP was sold, capital gains that arose was income which arose to the AOP, and had to be assessed in its hands. Under section 4 of the Act, income-tax shall be charged in respect of the total income of ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AOP before he distributes it among the members. That process has not been done in the present case. Therefore, we deem it fit to set aside the orders of the authorities below and restore the matter to the ITO for computing the income of the AOP and then divide among the two assessees. The assessees would be at liberty to put forward whatever objections they may have in the matter of computation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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