1993 (8) TMI 38

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.....-The following five questions are referred to this court by the Income-tax Appellate Tribunal at the instance of the assessee under section 256(1) of the Income-tax Act, 1961 : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the cost for which the bigger Hindu undivided family as the previous owner acquired the property in question....

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....ins ? 5. Whether, on the facts and in the circumstances of the case, the amount paid by the assessee to Dhirajlal and Navinchandra (i.e., other two parties to the partition) at the time of partition dated July 20, 1970, could be, for applying the general doctrine of real profits or gains, adopted as the assessee Hindu undivided family's cost of acquisition of the asset in question ?" The mai....

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....is court further held that the throwing of shares by a member of a Hindu undivided family into the family hotchpot is not a transfer in the strict legal sense. However, the substance of the transaction is that as a result of throwing shares into the common hotchpot, the Hindu undivided family acquires an absolute title to the shares. It is held that when shares are thrown by the karta of a Hindu u....