TMI Blog1979 (3) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... had already been made. 2. It was explained before the ITO that the entire funds for the construction of the property came out of the sale proceeds of the properties belonging to the deceased father and therefore, without realising the legal nature of the possession, he had been declaring all along as individual properties and now he had been advised to file a separate return with reference to the income from this property. The ITO however, found that there was no nucleus of the HUF, which could be attributed to the assessee's purchase of a piece of land. He further proceeded to express the following: "The assessee has filed the copies of the mutation wherein it has been stated that the assessee's father was made owner of certain agricul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion for Citizen of India to obtain clearance from the Department to obtain a loan. In the said application the assessee has categorically stated that he was sole owner of the property. The property in question being not only the land but all the super structure which stood mortgaged to the Life Insurance Corporation as long as the loan was not repaid. Therefore even if the funds are available with him from the sale of agricultural land which being an ancestral property the amount can be treated as loan from the assessee in his individual capacity. The assessee now cannot rebut back and claim that the property actually belongs to the HUF. To meet his additional need he utilised his family funds. Merely using of family funds does not mean th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Life Insurance which stood in his name and above all the property was purchased in the name of the wife and having regard to all these and also for the reason that the assessee was a salaried employee, the presumption of the ITO that the funds would have been accumulated only from salary was the correct conclusion and it is for assessee to rebut the same. Further his conduct in the past declaring the same as individual property and even for the current assessment year. In declaring as such would show his intention as the assessee was perfectly aware that it was his individual funds that had flown to the construction of the property. 5. As against these, the assessee's counsel strongly relied on the fact that the assessee's father had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been reaping income from agricultural property. All these facts were given to the lower authorities. That being so a greater portion of the initial burden on the assessee has been discharged to prove that there was the employment of the ancestral property that has given rise to the construction of the property. Hence I am satisfied that the AAC rightly came to the conclusion that it is the inherited property of the father that has gone to the construction of the above property. The next point would be whether in such a case it would become the property of the HUF. It was explained in this regard that after the death of the father each of the brothers had taken the respective share of the property and that being so there is no difficulty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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