Commissioner of Income Tax, Allahabad vs Avinash Kumar Maheshwari

The income tax Appellate Tribunal, Allahabad has referred the following question of law u/s 256(1) of the income tax Act, 1961 (hereinafter referred to as the Act) for opinion to this Court:- Whether on the facts and in the circumstances of the case, the income tax Appellate Tribunal was legally correct in excluding the sum of Rs. 12,807 from the assessment of the assessee for the assessment year 1979-80?

The Reference relates to the year 1979-80. Briefly stated the facts of this case are that the respondent-assessee has been assessed to income tax in the status of HUF. He claimed partial partition in respect of certain assets among its members. A sum of Rs. 12,807 accrued as interest in respect of the assets which was partitioned and come to the share of Smt. Lata Maheshwari and Abhishek Maheshwari. The Tribunal had excluded the aforesaid sum from the assessment of the respondent-assessee for the assessment year in question.

We have heard Sri A.N. Mahajan, learned Standing Counsel for the Revenue. We find that the plea of partial partition in respect of certain asses between the members of the family had already been accepted by this Court in case of CIT v. Avinash Kumar Maheshwari [2003] 133 Taxman 402.

In view of the fact that partial partition has already been accepted by this Court we hold that the Tribunal has rightly excluded the sum of Rs. 12,807 from the assets assessed at the hands of the respondent assessee. We, therefore, answer the question referred to us in the affirmative, i.e. in favour of the assessee and against the Revenue. There shall, however, be no order as to costs.