INCOME TAX ACT, 1961

Section 54B

Capital gains - Deduction under section 54B - Allowability in case of reinvestment in agricultural lands in the name of wife -

Assessee claimed deduction under section 54B as regards reinvestment in agricultural lands in the name of wife AO denied deduction on the ground that reinvestment made in the name of assessee alone was eligible for deduction under section 54B.Held: For the purposes of section 54B the new agricultural land need not be purcased by assessee in his own name nor is it necessary that it should be purchased exclusively in his name. Moreover, assessee in the instant case had not purchased land in the name of a stranger or somebody who was unconnected with him. He had purchased it only in the name of his wife. There was also no dispute that entire investment had come out of sale proceeds and that there was no contribution from assessee's wife. Accordingly, assessee was entitled for benefit under section 54B.

Followed:CIT v. Kamal Wahal 92013) 351 ITR 4 (Del) : 2013 TaxPub(DT) 1087 (Del-HC) and CIT v. Ravinder Kumar Arora (2011) 342 ITR 38 (Del-HC) : 2011 TaxPub(DT) 2178 (Del-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2007-08

INCOME TAX ACT, 1961

Section 54B

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