I had a query with respect to capital gains taxation that I would like your advice on.
The assessee (huf) has recently sold a property that was settled by her husband in 2004.Her three daughters had in settlement (release) deed in 2011 with their father ratified all the transactions of their father including this property.Both the above are registered deeds.
Later in 2018 the daughters and the parents entered family arrangement or kurchit in which the 3 daughters and the mother had agreed share all the properties equally,leaving separate property for their father.The daughters also stated in the Kurchit that the earlier 2001 deed is only ratify all the transactions of the father including the settlement to their mother.However they had not given up their right over the ancestral properties inherited by the mother.
Now the sale deed has been executed by their mother on her own(daughters/kurchit is not mentioned in the sale deed). Upon the claim by the daughters she agrees to share proceeds as per kurchit.She has already paid advance tax covering full capital gain.
The mother now wants to file her I.T return after giving share the daughters and claim refund and the daughters will file separate returns.Will I.T department accept this stand?
CAclubindia
