LALITABEN HARIPRASAD Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) BOTH the reference and tax appeal are taken -up for hearing together as the issue involved is identical.

(2.) IN Income -tax Reference No. 19 of 1998 following question of law arises at the instance of the assessee, Income -tax Appellate Tribunal, Ahmedabad Bench 'A' having made a reference under Section 256(1) of the Income -tax Act, 1961 ('the Act'): Whether on the facts and in the circumstances of the case, the assessee was entitled to claim Rs. 14,33,000 as additional cost of acquisition of the interest in property for purposes of computation of capital gains

(3.) THE applicant in tax reference is Smt. Lalitaben Hariprasad Shah and the appellant in tax appeal is Shri Hariprasad H. Shah. Assessment year in question is 1988 -89. There was a Hindu Undivided Family (HUF) of Hariprasad H. Shah consisting of Shri Hariprasad H. Shah (karta), his wife Smt. Lalitaben H. Shah and two sons Shri Deepak H. Shah and Shri Udayan H. Shah. The HUF owned immovable property known as 'Samir' situate in Ahmedabad and the said property was a residential property. On 3 -11 -1986 the property came to be divided as part and parcel of total partition which took place amongst members of HUF. In the process of such partition, the father and mother, viz, karta and his wife, the assessees before the Court, took one half share each of the immovable property as the property admitted of such physical partition. Necessary entries in the city survey records were also duly made pursuant to the said partition. On 11 -8 -1999 the Assessing Officer made an order under Section 171 of the Act recognizing the partition.