1985 (2) TMI 63

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.... estate was the premises in which hotel business was carried on in the name of Neo Mysore Cafe. After his death the two assessees let out the business under a lease deed reserving as consideration on an amount for the premises and a separate amount for the use of the other equipment. The income derived was thus assessed partly as income from property and partly as income from other sources in their individual hands. However, on 3-9-1973 a fresh lease deed was executed with effect from 1-9-1973 under which the entire business was given on lease as a going concern reserving a monthly rent of Rs. 8,000. The assessees contended that this income was derived as an AOP. For the assessment years 1974-75 and 1975-76 that contention was accepted by t....

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....tal gains was rightly computed on the basis of the market value of the property and not the actual consideration received. The revenue contests the appeals of the assessees on the ground that the capital gains arose to the two individuals as tenants-in-common and not as an AOP and that even if it arose to the AOP, the ITO has option not to assess the AOP but to assess individuals separately and in doing so, he need not compute the income as if it belonged to the AOP. 3. On a consideration of the rival submissions we are of the opinion that the capital gains arose to the AOP and the computation has to be made on that basis even if it were to be assessed in the hands of the two individual members of the AOP. It is well settled that profits....