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Income-Tax Officer vs K. Jayaraman on 17 November, 1986

7. In this case, the learned departmental representative submitted that there was no legal necessity for transfer of HUF property. The learned Representative further pointed out that there was no evidence to show that the income from property was actually passed on to co-owners. Therefore, according to the learned representative, the entire profit arising out of the transfer of the land has to be assessed only in the hands of the assessee. Since the assessee has not produced any evidence for development of the land; the assessing officer has rightly disallowed the expenditure claimed by the assessee on the so called development. Since the co owners agreement is not acted upon and the assessee has not produced any evidence for development of the property, the assessing officer has rightly computed the capital gain which was confirmed by the CIT(A). The learned DR placed reliance on the judgment of the Madras High Court in the case of ITO Vs. K. Jayaram (1986) (Mad. HC) (168 ITR 757) and submitted the assessing officer can go into the question of validity and genuineness of the documents produced before him.
Madras High Court Cites 3 - Cited by 5 - M Srinivasan - Full Document
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