S. 64 : Clubbing of income-Minor child-Capital gains-Sale of inherited property-Minor daughter’s share deposited in nationalized bank under Court order-Not includible in assessee’s hands. [S. 45, 54F, Hindu Minority and Guardianship Act, 1956, S.8(2)]
The assessee sold property inherited from his deceased wife, being entitled along with his minor daughter to equal shares. The City Civil Court, Chennai, permitted the sale and directed that the minor’s 50% share be deposited in a nationalized bank in the name of the Registrar under the Hindu Minority and Guardianship Act. The AO, however, included the daughter’s share in the assessee’s hands for LTCG computation, which was confirmed by the CIT(A). On appeal, the Tribunal held that since the assessee had no right to utilize the minor’s share and it was deposited under Court’s directions, it could not be treated as his income. The addition was deleted, and brokerage disallowance also allowed. Appeal allowed. (AY 2016-17 ) (ITA No. 1626/Chny/2025, dt. 03/09/2025)
Pradeep Jeyavelu v. ITO (SMC) (Chennai) (Trib.) (UR) www.itatonline .org .
[Coram : Hon’ble Shri SS Viswanethra Ravi, JM]