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TMI Blog1986 (6) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... d whether the lands which were secured by the assessee through 'sanad' were acquired for something or nothing. First of all we take up the issue pertaining to the status of the assessee which, according to the assessee was HUF, though it was not accepted to be so by the ITO but came to be accepted as such by the AAC when the matter came before him. The facts in the background are very interesting. The assessee Raja Shiv Dev Inder Singh, who was connected with the erstwhile ruling family of Patiala, had filed his return in the status of individual but in the course of assessment proceedings had made submission to the ITO that his correct status was that of HUF. This gentleman had married a foreigner and what agitated the mind of the ITO was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... marriage and was given the name of Jasminder Kaur. It was also asserted that she was blessed with three daughters who were named and brought up as Sikh girls. On this basis and for the reasons given by the AAC in para 4 of his order, he accepted the assessee's claim. 4. The learned senior departmental representative Mr. R.K. Bali on the first hearing on 12-6-1986 vehemently argued that there was no proof that the marriage was performed as per Sikh rites or Miss Gail Hate was converted as a Hindu. Regarding the photographs, he submitted that none was presented before the ITO and, according to him, none was on the file. After partly hearing the matter, the learned counsel for the assessee Mr. D.S. Gupta, who was present to support the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions, looking to the facts on record, perusing the affidavits and photographs and reasoning given by the AAC in his order, we are unable to accept the finding of the ITO or any contention of the learned senior departmental representative. According to us, every word of the order of the AAC deserves to be confirmed on the basis of uncontroverted facts that the assessee with his mother and father constituted HUF, it was as a consequence of partial partition of the said family that the assessee got the property in respect of which section 171 order was also passed and then the assessee married though an American citizen as per Hindu customs but did not lose his nationality. She was given the name of Jasminder Kaur and, as apparent from the pho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nous powers. Once the evidence was placed before the AAC which was also put to the ITO which could not be controverted by him which was also placed before us which was impossible to be proved as bogus, merely looking to the wild surmises and imagination of the revenue that in photos it could be anyone else in the garb of bride than Miss Gail Hare, cannot find approval from any judicious mind. Case law cited by the AAC and section 49 of the Act, on the one hand, and uncontroverted facts in the form of affidavit and photograph on the other hand, have compelled us to confirm the action of the AAC. 6. Coming to the second aspect of the matter that the asset which was the subject-matter of capital gains, was acquired by the assessee for nothin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agree that the property in question was acquired for nothing. 7. Once there is no controversy about the fact that property in question was given through a 'sanad' after merger of the Patiala State, it cannot be said that it was won in war for which soldiers or other paraphernalia were provided. It was purely a political decision and cost of acquisition in such a case is incapable of being ascertained. The Madhya Pradesh High Court decision in CIT v. H.H. Maharaja Sahib Shri Lokendrasinghji [1986] 51 CTR (MP) 146 on identical facts is on all fours applicable in the instant case and goes in favour of the assessee. The facts of that case were that Ratlam State was received in gift by the forefathers of H.H. Maharaja Sahib Shri Lokendrasinghj ..... X X X X Extracts X X X X X X X X Extracts X X X X
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