S.K. Pushpa, Davangere vs Assessee
In response to the said
notice, the assessee filed a return on 31.3.2005, declaring a total
income of Rs.45,000/- in her individual status. The assessee did
not declare capital gains arising from the acquisition of lands by
NHAI in the return filed by her on 31.3.2005. The AO observed
from the copy of partition deed and assessee's letter dated
17.8.2005 that the lands were acquired by late Channappa, i.e., the
father-in-law of the assessee and father of Shri S K Lingaraj and
he died intestate on 14.7.1971. By following the decision of the
Hon'ble Supreme Court in the case of CIT v Chander Sen 161 ITR
370, wherein it was held that the HUF or self acquired property of
father, who died intestate devolves to the son and it takes the
character of individual property and not HUF property, the AO held
that the above lands at Shamanur has devolved to Shri S K Lingaraj
in his individual status and hence, the same is not HUF property.
He observed that Mr. S K Lingaraj also died intestate and hence,
the property has devolved on Smt. S K Pushpa in her individual
Page 3 of 15 3 ITA No.1438/Bang/2008
status only and not in HUF status. He further observed that Smt.
S K Pushpa has received the entire consideration and even as per
the family partition deed, the amount of Rs.20 lakhs deposited with
G S Manjunath has been allotted to her only and the source for the
above deposit is sale consideration received from NHAI. He also
observed that as per the Khatha extract, all the lands after
alienation are standing in the name of Smt. S K Pushpa and hence,
she is the owner of all the above properties, as legal heir of Shri S
K Lingaraj.