2021 (9) TMI 544

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.... tax long term capital gain (LTCG) at Rs. 1,50,35,192/- on a protective basis in the hands of the assessee. 3. The assessee is an individual. The assessee is a son of one Shri. P. S. Vishwanathappa. The assessee also has a brother by name Shri. P. V. Sumanth. The assessee, his father and brother owned land at BBMP, Katha No.33 at 5th Main Road, K P Puttana Chetty Road, Ward No.142, Chamrajpet, Bengaluru. The assessee's father Shri. P. S. Vishwanathappa obtained the aforesaid property under a registered partition deed dated 05.05.195. The total area of the land was 8840 sq.ft. 4. On 15.07.1983, by a registered partition deed, the land area of 8840 sq.ft. was partitioned between the assessee, his father and his brother as follows:   ....

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....before him as follows: a. Whether the transaction involved results in capital gain in the hands of the assessee as one of the co-owner or his father Sri. P.S. Vishwanathappa as the kartha of HUF b. If the transaction involved results in capital gain in the hands of the assessee, what should be deemed sale consideration received or receivable by the assessee. c. If the transaction involved results in capital gain in the hands of the assessee, whether he is entitled for deduction u/s. 54F. 9. On the first issue, the AO came to the conclusion that the property in question was a joint family property and therefore capital gain should be assessed in the hands of the HUF and not in the hands of the assesee in his individual capacity. On th....

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.... than the new asset which is used for claiming the deduction u/s. 54F. In the case of the assessee, he has acquired another flat within the specified time than the one claimed deduction u/s. 54F. Hence, he is not eligible for deduction u/s. 54F of the I.T. Act, 1961." 10. Finally, the AO brought the capital gain computed by him in the hands of the assessee in his individual capacity protectively and reserved his right to tax the capital gain in the hands of the HUF on the substantive basis. 11. Before the CIT(A), the assessee submitted that the Assessing Officer (AO) did not pass any order in the hands of the HUF assessing LTCG substantively in the hands of the HUF and hence protective order in the hands of the Appellant for the entire pr....