COMMISSIONER OF INCOME TAX Vs. A K BASU

JUDGEMENT

(1.) THE following question of law has been referred to by the Tribunal under s. 256(1) of the IT Act:

(2.) THE relevant assessment year is the asst. yr. 1976-77 for which the accounting period is the year ended 31st March, 1976.

(3.) THE dispute relates to the income of the assessee from his interest in house at 74, Ashutosh Mukerjee Road, Calcutta. The property originally belonged to Lilabati Basu. After her death on 3rd Sept.,1966, the same devolved on her three sons including the assessee. The claim of the assessee was that the income from the property should be assessed in the hands of the family. The ITO rejected the claim on the ground that under the Dayabhaga School of Hindu Law, which was admittedly applicable to the assessee and his family, the assessee is deemed to be a co-owner having a definite interest therein. On appeal before the CIT(A), the assessee gave further details in regard to the ownership of the said property and its devolution upon him. The CIT(A) accepted the facts stated in the statement given to him on the ground that similar statement had been furnished to the ITO and he came to the conclusion that the property belonged to the HUF and should not be assessed in the individual hands of the assessee, by treating him as co-owner thereof.