Clubbing u/s 64(2) whether Gross or after Deductions?

Jag Mohan (Retired Finance Professional)   (41 Points)

21 November 2019  

I have a plot that I intend to transfer to my HUF and then sell it. HUF reinvests the entire sale consideration including Long Term Capital Gains and claims total exemption under Sec 54 F.  Now Sec 64(2) provides that income(section just says income and not gross income) from HUF shall be added back to me as transferor. However HUF has no income as above after taking advantage of Sec 54 F..

 

Is my assumption correct and tenable before the IT authorities? Is there any case law decided by Supreme Court on this