TaxTMI 
TaxTMI 
2018 (4) TMI 332
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..... 2. The assessment in these cases were framed by the AO u/s 147 r.w.s. 144 of the Act. The Assessing Officer has reopened the assessment by issuing notice u/s 148 of the Act to assess the capital gain arising from sale of agricultural land in the hands of Smt. Dhapu Devi Meena and the deposits in the bank accounts of the sons/ daughter in law of Smt. Dhapu Devi Meena. In the reassessment the AO assess the capital gain arising from sale of agricultural land in the hands of Smt. Dhapu Devi Meena and the income on account of deposits made in the bank accounts of the sons and daughter in law of Smt. Dhapu Devi Meena. The assessees challenged the action of the AO before the ld. CIT(A) and contended that the agricultural land in question was in....
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.... of the Agricultural Land i.e. Sales consideration received by the appellant, ignoring Sec. 8 and Sec. 10 of the Hindu Succession Act, 1956, read with Sec. 4, 45 and 48 of the Income Tax Act, 1961. This is in connection with the matter of her mother-in-law Dhapu Devi Meena (PAN: BZSPD1376G) 4.1) Under the facts and circumstances of the case and under the law, the learned A.O. has admitted that the agricultural land in question was ancestral and still, the Ld. AO has not divided the gross sale proceeds amongst the six sons and the widow appellant. By compulsion of law, the sons had legal and valid right to receive the property and the sale consideration thereof. 4.2) Under the facts and circumstances of the case and under the law, the ....
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....es. We find that the AO has applied the cost of acquisition of the land at nil without considering the provisions of the Income Tax Act in respect of the asset which was acquired by the assessee as under succession/ inheritance and previous owner the land had acquired the agricultural land prior to 01.04.1981. Therefore, we find substance and merit in the additional ground raised by the assessee so far as the cost of acquisition has to be determined by considering the relevant provisions of the Act as well as the fair market price of the land as on 01.04.1981. As regards the issue of assessing the capital gain in the hands of the legal heirs who have inherited the agricultural land in question instead of in the hand of only the widow of lat....
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....n that once sons have signed and executed the relinquishment deed along with the daughters of late Shri Bhawara @ Bhura in favour of their mother then the subsequent sale would be treated as the sale by only one assessee Smt. Dhapu Devi Meena. We find that the relinquishment deed was executed as per their family arrangement and mutual understanding so that the family of the daughters of late Shri Bhawara @ Bhura and Smt. Dhapu Devi Meena would not claim the amount in future and therefore, the sole purpose of executing relinquishment deed was to avoid the future dispute/litigation in respect of the share in the land. Thus, the relinquishment deed made it possible to share and distribute the sale consideration among the mother and sons exclud....