Hemant Shah v. ACIT - Taxpublishers.in

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The Tax Publishers2020 TaxPub(DT) 1836 (Mum-Trib) : (2020) 185 ITD 0068

INCOME TAX ACT, 1961

Section 54F

Where income of two minor children was also clubbed with assessee after claiming deduction under section 54F and AO denied benefit under section 54F on allegation that same was not available in hands of minor, considering that gains earned by minors were invested in CGAS, thus, after investment made by minor children under section 54F, left no chargeable capital gain which could be clubbed under section 64(1A) in hands of assessee.

Capital gains - Deduction under section 54F - Income of two minor children was also clubbed with assessee after claiming deduction under section 54F -

Assessee-individual showed long-term capital gain on sale of shares and a residential house and claimed exemption under sections 54, 54F and under section 54EC. In scrutiny proceedings, AO observed that income of two minor children was also clubbed with assessee after claiming exemption under section 54F for long-term capital gain earned by them on sale of shares and mutual funds individually. AO denied benefit under section 54F on allegation that same was not available in hands of minor. Held: Lower authorities did not dispute date of acquisition and sale of assets, nature of asset and period of holding, at hand on minors. There was no dispute that gains earned by minors were invested in CGAS. After investment made by minor children under section 54F, left no chargeable capital gain which could be clubbed under section 64(1A) in hands of assessee. Therefore, revenue was not justified in denying exemption of capital gain to minors, which was invested in capital gain accounts scheme (CGAS).

Followed:Dy. CIT v. Rajeev Goyal (2012) 22 taxmann.com 34 (Kol-Trib) : 2012 TaxPub(DT) 2515 (Kol-Trib) and Asstt. CIT v. Madan Lal Bassi 2004 TaxPub(DT) 0705 (Chd-Trib).

REFERRED : Alapati Venkataramiah v. CIT (1965) 57 ITR 185 (SC) : 1965 TaxPub(DT) 0294 (SC), Ushaben Jayantilal Sodhan v. ITO (2018) 93 taxmann.com 453 (Guj-HC) : 2018 TaxPub(DT) 2702 (Guj-HC), CIT v. Kapil Nagpal 63 taxmann.com 336 (Delhi-HC) : 2015 TaxPub(DT) 3617 (Del-HC), Dr. (Smt.) P.K. Vasanthi Rangarajan v. CIT (2012) 23 taxmann.com 299 (Mad) : 2012 TaxPub(DT) 2757 (Mad-HC), Shri Ashok Kumar Chauhan v. ITO 2019 TaxPub(DT) 3937 (Del-Trib), ITO v. Ms. Apsara Bhavana Sai (2014) 148 ITD 658 (Hyd-Trib) : 2014 TaxPub(DT) 3125 (Hyd-Trib), ITO v. Rasiklal N. Satra (2006) 98 ITD 335 (Mum-Trib) : 2006 TaxPub(DT) 0737 (Mum-Trib), ITO v. Yogi H. Aggarwal (2005) 96 ITD 288 (Mum-Trib) : 2005 TaxPub(DT) 1427 (Mum-Trib), Jt. CIT v. Govind Rohira Alias Srichand Rohra (2005) 95 ITD 77 (Mum-Trib) : 2005 TaxPub(DT) 0333 (Mum-Trib), ITO v. Kuldeep Jain 2002 TaxPub(DT) 1052 (Del-Trib) and ITO v. Subhash Chandra Wadhwa 2002 TaxPub(DT) 0409 (Del-Trib).