- (1.) THE Tribunal, Allahabad, has referred the following questions of law under s. 256(2) of the IT Act, 1961 (hereinafter referred to as 'the Act') for opinion of this Court : "1. Whether on the facts and circumstances of the case, the Tribunal was legally correct in holding that the grounds for deletion of the income of Rs. 1,52,551 from sale of land taken by the Revenue are devoid of any force and the income from sale of land had rightly been deleted from the total income of the assessee HUF by the learned CIT(A) ? 2. Whether on the facts and circumstances of the case, the Tribunal was legally correct in following the decision of the Allahabad High Court in Kalloomal Tapashwari Prasad vs. CIT 1973 Tax LR 697 on severance of status in the instant case concerning Sri Rakesh Kumar Gupta and Smt. Kaushalaya Devi with respect to immovable property -,
(2.) THE reference relates to the asst. yr. 1975 -76.
(3.) BRIEFLY stated the facts giving rise of the present reference are as follows : 1975 disclosing income of Rs. 10,411 under the head 'Income from house property'. The ITO has completed the income of Rs. 1,52,551 from sale of land. The transactions of the same have been found as adventure in the nature of 1,52,551 holding that the appellant HUF did not have any occasion to derive any benefit out of the sale proceeds of the land which did not belong to the HUF. On appeal by the Revenue, the Tribunal dismissed the same holding that the grounds taken by the Revenue are devoid of any force since the amount of Rs. 1,52,551 representing income from sale of land has rightly been deleted from the total income of the assessee HUF for the assessment year under consideration. The Tribunal has relied upon the judgment of this Court in the case of Kalloomal Tapashwari Prasad vs. CIT 1973 Tax LR 697 (All) in which it has been held that where a severance in status has taken place, the HUF could not be treated as the owner of the property. We have heard Sri Shambhoo Chopra, learned standing counsel appearing for the Revenue.;