dear all
A propery was purchased in the name of coparcener out of huf fund.now because of some family disputes between that co parcener and other members of huf,he want to claim that huf has no right in the property because the property was purchased in his individual name
1.whether a coparcener can do this.
2.can huf claim on this property.
3.coparcener claims that huf has right only to recover the fund amount and interest due there on but he has no right in the property.
regards
tarun rustagi
Dear Tarun,
The question involved in your query is not the question of law which can be answered with reference to any provision of Income Tax.
It involves a question of fact "Whether HUF was a beneficial owner of the Property purchased by the money given by HUF"?
Secondly, I read somewhere that a HUF cannot give Gifts to its members or co-parceners. So if HUF was not the beneficial owner of the property that money given to the co-parcener should be in the nature of Loan.
Court will decide based on Facts & Circumstances of the case.....
CAclubindia
