Huf

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2013 Father A died intestate and the immovable propert was shared equally by wife,daughter and three sons by way of a settlement Deed.Mother and Daughter gifted their share of property in favour of second son B.There after second son B procured the share of his two brothers by way of relinquishment deed for certain consideration. Now the question is whether second son B can form a HUF with his share and the other shares received by way of gift and relinquishment to construct apartments and sell the same and treat the profits as income from business in the hands of HUF.
I look forward to guidance and opinion.
Thank you.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

28 May 2013 You have mixed several issues. In father's HUF all co-partioners are having equal share. So first the partition deed should have been made. Relinquishment of right for consideration is nothing but sales. The other brothers shall be liable for Capital Gains. The purchaser brother can take the share only in his individual capacity and not in HUF if no partition deed is made. Through partition deed he can take in his HUF. You can contact at ssunderagarwal@gmail.com

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now