You may have heard that Indian Hindus primarily follow two schools of law- Mitakshara and Dayabhaga. In West Bengal and Assam, Hindus follow the Dayabhaga school of law, while the rest of India follows the Mitakshara. But what about Bengali individuals living in Delhi? This is the exact dilemma that Late Mr Mittra from Greater Kailash-1 faced during a dispute with the Income Tax Department.
Mr Mittra, a landlord, had filed his income tax return (ITR) declaring rental income, but it was flagged by the Computer-Assisted Scrutiny Selection (CASS) system of the Income Tax Department. CASS picked Mittra’s ITR as his Form 26AS showed that he had earned Rs 1.89 crore as rent from properties owned personally and HUF. However, Mittra declared Rs 1.45 crore of that rental income under his Hindu Undivided Family’s (HUF) name and the rest under his individual ITR. This discrepancy in reporting led to a tax dispute between him and the Income Tax Department.