COMMISSIONER OF INCOME-TAX Vs. VISHWAS D RANADE

JUDGEMENT

(1.) IN this income-tax reference relating to the assessment year 1976-77, the Income-tax Appellate Tribunal at the instance of the Revenue has referred the following questions for opinion under Section 256 (1) of the Income-tax Act, 1961 :

(2.) THE brief facts relevant for the purpose herein are as follows : Mr. Digambar Hari Ranade (since deceased) became an owner of the immovable property situated at 1381, Shukrawar Peth, Pune, pursuant to the partition deed dated January 27, 1930, that took place between Bhaskar H. Ranade, Digambar H. Ranade and their fathers. The said Digambar H. Ranade died on April 7, 1965. On July 12, 1965, the names of the following legal heirs of the deceased were entered in the City Survey Record and also in the Municipal record, in respect of the aforesaid property of the deceased :

(3.) ON June 5, 1975, all these four legal heirs entered into an agreement with M/s. A. V. Apte and Co. for sale of the aforesaid property. On November 20, 1975, independent final sale deeds were executed in favour of each of the aforesaid four legal heirs separately. The total amount of consideration for sale of the property was Rs. 2,75,000. It is an admitted position that each of the aforesaid legal heirs have individually paid tax on capital gains arising on the sale of the said property and the same has been accepted by the Income-tax Department.