DILIP CHINUBHAI SHAH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee, the Income -tax Appellate Tribunal, Ahmedabad Bench 'B', has referred to this court the following question of law arising out of its order passed in I. T. A. No. 2007/Ahd of 1984 under the provisions of Section 256(1) of the Income -tax Act, 1961 (hereinafter referred to as 'the Act').

(2.) THE facts giving rise to the reference, in a nutshell, are as under : Shri Chinubhai Motilal Shah, who died intestate on February 20, 1965, was survived by his three daughters, four sons and a widow. After his death, one of his properties, a residential house situated at Panchvati, Ellisbridge, Ahmedabad, devolved upon his four sons. By executing a memorandum/deed dated March 27, 1973, the said property was given to the Hindu undivided families of the four sons. Though the said residential house was not partitioned by metes and bounds, as per the said memorandum, with effect from March 26, 1973, the Hindu undivided families of the four sons had acquired equal share in the said property.

(3.) DURING the assessment year 1979 -80, two of the families disposed of their rights in the said property in four of the other two families by executing the sale deed dated July 7, 1978. Thus, during the previous year ending on March 31, 1979, two families ceased to be joint owners in respect of the said property whereas the families of two brothers became joint owners of enhanced shares in the said property.