1982 (6) TMI 93 - AT - Income Tax

Summary

Issues:
Interpretation of ownership share in property for assessment year 1972-73 based on joint funds contribution and family settlement.

Analysis:
The judgment revolves around the dispute of ownership share in a property, S.C.O No. 85-86, Sector 17C, Chandigarh, for the assessment year 1972-73. The property was initially purchased in the name of the assessee's wife, funded jointly by the assessee and his wife. The main contention was regarding the ownership share, with the revenue assessing the assessee's share at 78% and his wife's at 22% based on their contributions to the property's construction. The assessee claimed a 2/3rd share, while the revenue disagreed. The assessee asserted that he relinquished his share into the common potch of his Hindu Undivided Family (HUF) and had a family settlement agreement with his wife and son for equal shares as tenants-in-common, i.e., 1/3 share each in the property's income.

The judgment highlighted the assessment proceedings for the relevant years, including protective and substantive tax assessments based on the ownership share claimed by the assessee and his family members. A civil court adjudicated the dispute, affirming that the wife and son each held a 1/3rd share in the property. The Tribunal's decision was influenced by a Punjab and Haryana High Court ruling emphasizing that the revenue should refrain from questioning the validity of civil court decrees unless proven collusive. Consequently, the Tribunal accepted the assessee's 1/3rd ownership share based on the civil court's decision and legal precedent.

During the reference application, the revenue disputed the Tribunal's findings only in one specific case, emphasizing the consistency of the Tribunal's decisions in related matters. The Tribunal's order explicitly acknowledged the assessee's 1/3rd ownership share based on the civil court ruling and legal precedents, concluding that no question of law arose for reference. As a result, the reference application was dismissed, affirming the Tribunal's decision regarding the ownership share in the disputed property for the assessment year 1972-73.