BHOOMIAMMA K LATE Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE are references under the provisions of section 256 of the Income-tax Act, 1961 ("the Act" for short). The common question referred to us reads thus :

(2.) THE question pertains to the assessment year 1976-77. THE undisputed facts are that one Gururaja Achar died intestate on February 9, 1969, and one of his assets left by him was a hotel premises including the hotel business. THE assets were inherited by his two widows. THE widows leased the business under which rents were received separately for the premises and for the use of other equipment. Subsequently, the entire business as such was leased in the year 1973 as a going concern. THE income from the lease was claimed as belonging to the association of persons comprising the two widows during the assessment years 1974-75 and 1975-76. THE statement of the case states that this contention was accepted by the Appellate Assistant Commissioner as well as by the Tribunal. A further sentence however states that, "it appeared that the assessments of the individuals were restored to the Income-tax Officer for making fresh assessments and they are still pending". Subsequently the entire business as a going concern was sold on October 30, 1975. THE recipients of the consideration filed returns as individuals as well as an association of persons. THE capital gains thus received was assessed in the status of individual by the assessing authority. This order was substantially affirmed by the Commissioner (Appeals) from which appeals were filed by the assesses as well as by the Revenue. THE assesses contended that the capital gains must be assessed only in the hands of an association of persons. THE Revenue contended in its appeals questioning the computation of the capital gain. THE Appellate Tribunal has rejected the Revenue's appeals and, therefore, we are not concerned with the said question.

(3.) THE assessees are aggrieved by this direction.