Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (10) TMI 70 - ANDHRA PRADESH HIGH COURTApplication of section 60 and 64(4)(iv) – The petitioner is the Kartha of HUF and the HUF is a partner, in a firm - petitioner gifted half of the holding in the firm to his wife - profit derived by Smt. Subbaratnamma – Held that:- The HUF held a share in the firm and it was receiving its share of profits from the firm - That in turn was being treated as the income of the HUF - Had it been a case where the HUF transferred part of its share in the firm in favour of an outsider, its income, to that extent could have certainly been treated as reduced - The transfer is said to have been made by the petitioner in the form of a gift to none other than his wife - the donee is very much part of the HUF, along with the children - Even if the disposition through the declaration is treated as valid, it did not have the effect of taking any fraction of the share of the HUF in the firm, outside the purview of the HUF. When the entire shareholding in the firm is by the HUF, there was no occasion or basis for further changing the extents among the persons constituting HUF - in a HUF, no member can claim any definite share in the assets, till the partition takes place - as long as the Hindu Family remains joint, which in fact is a sine qua non for it to be recognised as HUF, the question of one member of the HUF claiming any particular share in it, in contradistinction to undivided share much less transferring it in favour of another does not arise - once the assessee is a HUF and its income from the partnership firm remained unaffected, no legal consequences referable to the Act can be said to have flown from the declaration dated 15-04-1981 said to have been made by the petitioner – Decided against assessee.
|