can the HUF be called relative in this case??

Pvt ltd 1472 views 4 replies

Please clarify this point.:

Mr. A takes deposit from Mr.A (HUF).then Can Mr. A(HUF) be called relative of Mr. A under sec.6 .where no share holders are members of HUF and all share holders are in individual capacity only.

Replies (4)

Hello Ekta,

Mr. A and Mr.A(HUF) cannot be called relative u/s 6, unless one is related to the other in the manner indicated in Schedule IA.

Neither they are members of HUF or are Husband and Wife.

Experts please correct me if I am wrong.

Regards,

Binish C

 Mr. Binesh,

How Mr. A is not related to Mr. A (HUF). See 6 quoted below

6 A person shall be deemed to be a relative of another if, and only if,—

         (a)  they are members of a Hindu undivided family; or

         (b)  they are husband and wife; or

         (c)  the one is related to the other in the manner indicated in Schedule IA.]

 

Mr. A being Karta (member) of Mr. A (HUF) then it is obviuos that it becomes a relative of Mr. A. 

 

Malav

The points to be considered in this case are:

 

1) Under Sec.6 one 'person' is a relative of another 'person'.  The question here is whether HUF is a person?  Courts have held that HUF is a 'person' for the purposes of Income Tax Act.  However, it is not a juristic person like a company.

 

2) As per Sec.6 in order to be relative both the persons should be members of HUF.  In this case second person is HUF itself and not member of HUF.  However, if we consider only the Karta, we can say he is a member of HUF.

 

Members may pl give their views considering above points.

 

Regards,

 

Ohk, but i am stil confused...


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