2016 (2) TMI 46

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.... Sri M Sathyanarayana (HUF). The appellant filed his return of income for the assessment year 2005-06 delcaring the income of Rs. 1,12,540/- on 31.10.2010. The return of income filed by the appellant/assessee was selected for scrutiny and the assessment was concluded under Section 143(3) of the Income Tax Act, 1961 ('the Act' for short) on 31.12.2007. The Assessing Officer added an amount of Rs. 1,51,200/- as income from house property and Rs. 2,30,000/- towards long term capital gains. The appellant being aggrieved by the order of the Assessing Officer filed an appeal before the Commissioner of Income Tax (CIT) -A, Bangalore. The First Appellate Authority confirmed the order passed by the Assessing Officer dismissing the appeal. Ag....

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....that HUF is a person for the purposes of assessment under the Act and as such assessing the rental income belonging to the HUF in the individual status is not justifiable, when the returns of the previous years and the subsequent years have been accepted in the status of HUF. It is further contended the whole confusion was crept in on the wrong mentioning of the PAN number of the assessee by the tenant in the rental agreement and thus, this error cannot convert a HUF property into that of the individual property and it is not permissible in law to have such conversion without proper partition or other relevant document. Further, the income tax returns filed and accepted by the departmental authorities for the previous years and subsequent y....

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.... the tenant has wrongly mentioned the PAN number (individual) of the assessee in the rental agreement due to some inadvertence, it would not change the status of the assessee/appellant. In such view of the matter, it requires detailed examination of the PAN numbers of the assessee in the context of the PAN number mentioned in the agreement said to have been disclosed by the tenant of the assessee. It is based on the rental agreement, the departmental authorities have proceeded to treat the assessee in the status of an individual regarding the income in question. The undisputed fact that the departmental authorities have accepted the income in question of the assessee, in the status of the HUF for the previous and subsequent years and it is ....