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Issues:
1. Adoption of status as Body of Individuals by AAC 2. Fixation of cost price of the property at Rs. 50,000 Analysis: Issue 1: Adoption of status as Body of Individuals by AAC In the assessment for the year 1969-70, the ITO described the status as AOP and determined capital gains on the sale of a property. The assessee contended that there was no concept of Association of Persons and argued that the four grandsons were co-owners holding the property as tenants in common. The AAC accepted this contention, considering the absence of a common design among the individuals. The assessee's counsel argued that the status of Association of Persons or Body of Individuals should only apply to individuals with a unity of interest and common design, which was lacking in this case. The Departmental Representative, however, argued that the status should be Body of Individuals due to the unity of interest in selling the property for profit. The Tribunal held that there was no evidence of joint activity to earn income, and each member should be assessed separately for capital gains. Issue 2: Fixation of cost price of the property at Rs. 50,000 Regarding the valuation of the property as of January 1, 1954, the AAC fixed the value at Rs. 50,000 based on appreciation in urban property values. The assessee's counsel contended that the value should have been Rs. 70,000. The Tribunal upheld the AAC's decision, confirming the valuation at Rs. 50,000. In conclusion, the Tribunal partly allowed the appeal, directing the ITO to assess each member separately for capital gains and confirming the valuation of the property at Rs. 50,000 as of January 1, 1954.
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