Question

- Who is assessee in case of a HUF ?
(A) Father
(B) Spouse
(C) Karta
(D) Deemed Karta
​

Answer 1

Answer:

(C) Karta this is the correct answer

The location from which a HUF is governed determines the HUF's residential status rather than the Karta's residence. In this instance, even if the Karta lives outside of India, the HUF is run by Indian citizens, making the HUF a resident of India.

Explanation:

HUF:

According to section 2, an assessment is any person for whom a procedure under this Act has been filed for the assessment of his income (7). The definition of "person" in Section 2(31) includes "a person," "a Hindu Undivided family," etc.

The Tribunal determined that the gain of segment 54B became to be had to "assessee or mother and father of his" based only on the analysis of segment 54B prior to alteration. Each individual who has been taken into account for the purposes of any action under this Act for the appraisal of his income has been described as an assessee in section 2(7). In segment 2(31), which includes a character, a Hindu Undivided family, etc., the man or woman is mentioned. It is plainly clear from the combined analysis of the aforementioned clauses that a person, Hindu undivided family, etc., is an assessee for the purposes of the Income-tax Act. The assessee used in segment 54B may be understood to be the HUF since it may be an assessee.

Numerous courts have taken opposing positions on the question of whether section 54B deductions are allowed for men or women who are not people. As a result, the 2012 Finance Act was used to position the debate for liberalisation.

As a result, the change made by the Finance Act of 2012 in Section 54B by replacing the words "the assessee being a character or his parent, or a Hindu undivided family" with "the assessee being a character or his parent, or a Hindu undivided family" became classificatory in nature, and the assessee could be eligible for a deduction for the Assessment Year 2012–13 as well.

Answer 2

Answer:

Karta.

Explanation:

• Section 2 states that a person who has a procedure filed under this Act for the assessment of his income is considered to be assessed (7). Section 2(31) defines "person" as including "a person," "a Hindu Undivided family," etc.
• Based only on the analysis of segment 54B prior to change, the Tribunal found that the gain of segment 54B became to be had to "assessee or mother and father of his."
• Regarding the issue of whether men or women who are not individuals are eligible for section 54B deductions, numerous courts have taken contrasting stances. The 2012 Finance Act was thus utilized to frame the discussion in favor of liberalization.
• The phrase "the assessee being a character or his parent, or a Hindu undivided family" was changed to "the assessee being a character or his parent, or a Hindu undivided family" as a result, and the change made by the Finance Act of 2012 became classificatory in nature, making the assessee eligible for a deduction for the Assessment Year 2012–13 as well.

Thus the correct answer is Option C.

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