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of <h1>Court rules insurance money as personal property not ancestral, clarifies rent as annual letting value. Ruling on dividend income.</h1> The court determined that the insurance money received by an individual was personal property and not ancestral property of a Hindu undivided family, ... HUF Issues involved:1. Determination of whether certain amounts and income are ancestral property of a Hindu undivided family or individual property.2. Computation of income from house property based on actual rent received versus standard rent under the Delhi Rent Control Act.3. Ownership of shares and dividend income in the context of a Hindu undivided family.Issue 1 - Ancestral Property:The case involved the receipt of insurance money by an individual, which was claimed to be ancestral property of a Hindu undivided family. The court referred to a previous decision where it was established that the insurance money received was the personal property of the individual and not the Hindu undivided family. Consequently, it was held that the shares purchased with this money belonged to the individual, not the joint family.Issue 2 - Income from House Property:Regarding the computation of income from a house property, the court considered the actual rent received as the annual letting value for income tax purposes. Citing a Supreme Court decision, it was clarified that the standard rent, even under the Income-tax Act, should be considered as the annual letting value. The court determined that the standard rent would remain unchanged, based on the initial rent when the property was first let out, despite subsequent rent increases.Issue 3 - Ownership of Shares and Dividend Income:In a separate reference by the Department, the question of ownership of shares and dividend income was raised. The assessee agreed to consider the dividend from certain shares as belonging to the Hindu undivided family, despite the Tribunal's initial decision in its favor. As a result, the court ruled in favor of the Department based on the assessee's acceptance of the Department's position to avoid further litigation.The judgment addressed the issues of ancestral property, computation of income from house property, and ownership of shares and dividend income in the context of a Hindu undivided family, providing clarity on each aspect based on legal precedents and agreements between the parties involved.
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