The Tax Publishers2020 TaxPub(DT) 2969 (Del-Trib) : (2020) 080 ITR (Trib) 0089

INCOME TAX ACT, 1961

Section 54

Where assessee purchased the new house in name of his youngest son, exemption could not be denied on allegation that purchase of property was not in assessee's name when property was acquired by assessee himself through consideration received from sale deed of earlier old property and payment was made by assessee for purchase of new property within stipulated time as prescribed under section 54.

Capital gains - Deduction under section 54 - New house property purchased in name of assessee's son instead of name assessee himself -

Issue arose as to whether exemption claimed under section 54 could be denied when assessee purchased new property in name of his son instead of his own name. Held: Assessee demonstrated before lower authorities that purchase of property in name of son was acquired by assessee himself through consideration received from sale deed of earlier old property. Bank statement and cheque issued to builder as well as confirmation received from builder demonstrated that payment was made by assessee for purchase of new property within stipulated time as prescribed under section 54. Thus, exemption could not be denied if entire investment came out of proceeds of old property.

Followed:CIT v. Shri Kamal Wahal (2013) 351 ITR 4 (Del) : 2013 TaxPub(DT) 1087 (Del-HC)

REFERRED : CIT v. Sambandam Udaykumar (2012) 345 ITR 389 (Karn) : 2012 TaxPub(DT) 1804 (Karn-HC) CIT v. Shri Gurnam Singh (2010) 327 ITR 278 (P&H) : 2010 TaxPub(DT) 0081 (P&H-HC) CIT v. R.L. Sood (2000) 254 ITR 727 (Del) : 2000 TaxPub(DT) 0875 (Del-HC) Late Mir Gulam Ali Khan (by Legal Representative Mrs. Noor Begum v. CIT (1987) 165 ITR 228 (AP) : 1987 TaxPub(DT) 0209 (AP-HC) Jagpal Singh v. Income Tax Officer (2007) 186 Taxman 26 (Del)

FAVOUR : In assessee's favour

A.Y. : 2010-11

IN THE ITAT, DELHI BENCH

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