2003 (3) TMI 12

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....erred at the instance of the Revenue is, "Whether, on the facts and in the circumstances on the case, the Appellate Tribunal is right in law in holding that the capital gains arising on the sale of the Quilon property is not assessable in the hands of the assessee but only in the hands of her four daughters?" The Quilon property is the one referred to in the will of the deceased father of the as....

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....,60,000. She deposited the proceeds in equal shares in the names of her four daughters in the business which had been bequeathed to her. She did not report any capital gain arising from the sale of the property. The Assessing Officer, however, held that she had, in fact, derived capital gains from the sale, and that such capital gain was taxable in her hands. He did so after rejecting the assess....

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....e is a trustee for her daughters. Learned counsel for the Revenue submitted that the Commissioner, as also the Tribunal have fallen into error in holding that the assessee was not the owner and that she was not liable to be taxed on the capital gain resulting from the sale of the property. It was rightly pointed out by counsel that in terms of the will, the bequest is in favour of the assessee wh....

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....ed after the demise of the testator was required to apply the income from the property for the education and marriage of her children. In the event of the property being sold, the proceeds were also to be applied for the same purposes. The residue, if any, after meeting those expenses was to belong to the assessee. The assessee's position, as held by the Tribunal, would in the circumstances be tha....