INCOME TAX ACT, 1961

Section 54B

Capital gains - Exemption under section 54B - Assessee purchased land in name of his wife after selling agricultural land -

Case of assessee was that he and his three brothers had sold jointly owned land for his 1/4th share. He purchased land in name of his wife and claimed exemption under section 54B. Revenue declined exemption in view of judgment in CIT v. Shri Dinesh Verma [ITA No. 381 of 2014]. Held: Assessee contended that in case of Shri Dinesh Verma (supra), Court did not consider case of CIT v. Gurnam Singh, according to which, assessee was entitled to exemption under section 54B. Contention raised by assessee lacked merit. It was an undisputed fact that after selling agricultural land, assessee purchased a land worth his share, in name of his wife. The issue was directly covered in Dinesh Verma's case (supra). The reliance of Gurnam Singh's case (supra) will not enhance case of assessee as property in that case was purchased in joint name of the assessee and his only son, which was not the case in instant case.

Distinguished:CIT v. Curnam Singh (2010) 327 ITR 278Followed:CIT v. Dinesh Verma ITA No. 381 of 2014, dt. (6-7-2015)

REFERRED :

FAVOUR : Against the assessee

A.Y. :

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