INCOME TAX6 Sept 2026
Bengali Hindu landlord split ₹1.89 cr rental income between HUF and personal ITR, then got a tax notice — here's why
ITAT Delhi ruled a Bengali Hindu can indeed have a Hindu Undivided Family (HUF) for tax purposes. A landlord had split ₹1.89 crore rent between HUF and personal returns; tax officers objected, saying Bengali Dayabhaga law doesn't recognise HUF. The tribunal deleted the addition, citing earlier court rulings. If you claim HUF status, keep old records to prove it.
Key Statutory Highlights
- Devranjan Mittra earned ₹1.89 crore as rental income in AY 2023-24, declaring ₹1.45 crore in his HUF return and the rest in his individual return.
- Tax officers said a Bengali following the Dayabhaga school cannot form an HUF, but ITAT Delhi rejected this because no judicial precedent supported it and cited Calcutta High Court rulings.
- The tribunal ordered the additions in Mittra's individual assessment deleted, while allowing the department to examine the matter in the HUF's assessment as per law.
Actionable Advice for Taxpayers / Founders:If your family uses HUF status for income, keep documents like partition records and old tax orders ready—you may need them if the department questions whether the HUF exists.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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