The Tax Publishers2020 TaxPub(DT) 3010 (Jp-Trib) : (2020) 208 TTJ 0001

INCOME TAX ACT, 1961

Section 54

Mere fact that fresh investment had been made in the name of spouse could not be a reason for disallowance of deduction under section 54.

Capital gains - Deduction under section 54 - Denial on ground of fresh investment made in the name of spouse -

Assessee sold residential house and invested proceeds thereof in certain piece of land for construction of new residential house. AO rejected assessee's claim on the ground of fresh investment made in the name of assessee's wife. Held: Where the investment in the new house property had flown from assessee, which was not in dispute in the instant case, merely for the reason that new residnetial house property had been purchased by assessee in the name of his wife, same could not be basis for denial of deduction claimed under section 54F.

Followed:CIT v. V. Natarajan (2006) 203 CTR 37 (Mad) : 2007 TaxPub(DT) 0183 (Mad-HC), Vivek Jain v. Dy. CIT [ITA No. 139/JP/2016 dt. 8-12-2017] and Mahadev Balai v. ITO [ITA No. 136/2017 & Ors. dt. 7-11-2017].

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09

INCOME TAX ACT, 1961

Section 271F

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