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| The Tax Publishers2020 TaxPub(DT) 2130 (Bang-Trib) INCOME TAX ACT, 1961
Section 54
Where entire consideration towards purchase of a new residential house had flown from bank account of assessee, the assessee would be entitled to full deduction under section 54 even though such residential house was jointly purchased in the name of the assessee and her son.
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Capital gains - Deduction under section 54 - New residential house jointly purchased in name of assessee and her son - Entire purchase consideration paid by assessee
Assessee sold a residential property. She purchased another residential property in her name and her son's name. She claimed deduction under section 54 towards cost of new residential property against long-term capital gain arising on sale of original house property. Since the new residential property was purchased in the name of the assessee and her son, AO restricted the deduction under section 54 to 50%. Held: It was found that entire consideration towards purchase of a new residential house had flown from bank account of assessee. Therefore, as the entire consideration towards purchase of a new residential house had flown from the bank account of the assessee, the assessee would be entitled to full deduction under section 54 even though such residential house was jointly purchased in the name of the assessee and her son.
Followed:DIT v. Mrs. Jennifer Bhide (2011) 15 taxmann.com 82 (Kar.) : 2011 TaxPub(DT) 1950 (Karn-HC) and Shri Bhatkal Ramarao Prakash v. ITO (ITA No. 2692/Bang/2018, dated 4-1-2019) : 2019 TaxPub(DT) 1041 (Bang-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, BANGALORE BENCH
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