INCOME TAX ACT, 1961

Section 54F

Capital gains - Exemption under section 54F - Denial on the ground that land on which assessee had claimed to build the residential house was in name of his mother -

Assessee sold certain immovable properties and claimed exemption under section 54F for construction of residential house. Assessee's claim was rejected as AO noting that land on which assessee had claimed to build residential house was in the name of his mother. Commencement and completion certificate issued by Municipal Corporation was also in the name of the mother of assessee. CIT(A) and Tribunal upheld the view of AO. Held: CIT(A) followed the decision in the case of Prakash v. ITO & Ors. [(2009) 312 ITR 40 (Bom) : 2009 TaxPub(DT) 850 (Bom-HC)], wherein assessee purchased property in the name of adopted son and not on his own name, he was denied the benefit. In view of the law laid down by Court, substantial questions of law as framed did not arise and accordingly, exemption under section 54F was rightly denied by Tribunal.

REFERRED : CIT v. Podar Cement Pvt. Limited & Ors. (1997) 226 ITR 625 (SC) : 1997 TaxPub(DT) 1265 (SC), CIT-XII v. KAMAL WAHAL (2013) 351 ITR 4 (Del) : 2013 TaxPub(DT) 1087 (Del-HC), CIT v. Ravinder Kumar Arora (2012) 342 ITR 38 (Del-HC) : 2011 TaxPub(DT) 2178 (Del-HC), Prakash (by legal heir of assessee) v. ITO & Ors. (2009) 312 ITR 40 (Bom) : 2009 TaxPub(DT) 850 (Bom-HC) and Late Mir Gulam Ali Khan (by Legal Representative Mrs. Noor Begum v. CIT (1987) 165 ITR 228 (AP) : 1987 TaxPub(DT) 209 (AP-HC).

FAVOUR : Against the assessee.

A.Y. :

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