1989 (1) TMI 47

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....ecuted on November 16, 1970, and thereafter, on August 11, 1971, the two plots on the Mall Road, Karnal, were sold and the sale proceeds of these plots were credited to the accounts of the members of the Hindu undivided family on August 13, 1971. In the context of the liability for payment of capital gains tax arising from the sale of the two plots on the Mall Road, Karnal, the question that arose was with regard to the date on which this partial partition relating to these plots took place. The Income-tax Officer as also the Tribunal held that the date of this partial partition was August 13, 1971, the day on which the sale proceeds of the sale of the plots were distributed amongst the members of the Hindu undivided family. This is the fac....

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....y, except where and in so far as a finding of partition has been given under this section in respect of the Hindu undivided family ... Explanation. - In this section, (a) 'partition' means (i) where the property admits of a physical division, a physical division of the property, but a physical division of the income without a physical division of the property producing the income shall not be deemed to be a partition, - " There can be no manner of doubt that the property in question here, namely, each of the two plots on the Mall Road, Karnal, was capable of physical division. A specific finding to this effect was also recorded by the Income-tax Officer which was never thereafter challenged. No physical division of the property ever took ....