DT Fundas - Tarun rustagi ( Author) (1150 Points)
19 April 2010dear all
A propery was purchased in the name of coparcener out of huf fund.now because of some family disputes between that co parcener and other members of huf,he want to claim that huf has no right in the property because the property was purchased in his individual name
1.whether a coparcener can do this.
2.can huf claim on this property.
3.coparcener claims that huf has right only to recover the fund amount and interest due there on but he has no right in the property.
regards
tarun rustagi
Amir
(Learner)
(4016 Points)
Replied 19 April 2010
Dear Tarun,
The question involved in your query is not the question of law which can be answered with reference to any provision of Income Tax.
It involves a question of fact "Whether HUF was a beneficial owner of the Property purchased by the money given by HUF"?
Secondly, I read somewhere that a HUF cannot give Gifts to its members or co-parceners. So if HUF was not the beneficial owner of the property that money given to the co-parcener should be in the nature of Loan.
Court will decide based on Facts & Circumstances of the case.....
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 19 April 2010
thanks dear amir
but i want to make u more clear that the property means land was purchased 40 years ago in 1969. a house was constructed over it in year 1973.the aforesaid land was alloted by municipality commitee for a conideration of rs.20 per square feet at that time.the house bulid over it is used by four families but now the house is not in a condition so that a family can easilly live there in now.so all the members(except that coparcener) want to reconstuct the house but that coparcener arises a disputes that you can not do so bcoz the property in his name.
regards
tarun rustagi
CAclubindia
