| |
| The Tax Publishers2020 TaxPub(DT) 3489 (Bang-Trib) : (2020) 185 ITD 0418 INCOME TAX ACT, 1961
Section 54F
Both assessee and his wife stated that purchase was by wife of assessee although in purchase deed, name of assessee was also there along with name of wife and purchase consideration of second residential property was paid by her out of joint/her individual bank account. Further, assessee's wife was having sufficient own funds in that joint bank account received as her share in sale proceeds of shares. Accordingly, disallowance of assessee's claim for deduction under section 54F on the ground of assessee holding one more residential property in joint name along with his wife, could not be sustained.
|
Capital gains - Deduction under section 54F - Assessee holding one more residential property in joint name with his wife - Purchase was by wife of assessee and also paid for by her
Assessee claimed deduction under section 54F. AO denied deduction on the ground that assessee on the date of transfer held more than one residential property one fully owned by assessee. AO and other jointly owned by assessee along with his wife. Assessee's case was that purchase was by wife of assessee, although in purchase deed, name of assessee was also there along with name was wife and purchase consideration of second residential property was paid by her out of joint/her individual bank account. Held: For triggering to say that a property is purchased by a person, mere inclusion of his or her name in purchase deed is not enough because this may happen for various reasons including this reason also that other person who is really purchasing the property wanted to include name of his relative in the purchase deed for some emotional issues. In the proviso (ii) to section 54F(1), pre-requirement is this that assessee has purchased one more residential house other than new asset within one year after the date of transfer of original asset and this is not enough that some ownership right is acquired by him in such property within such time which has not accrued to him on account of purchase. Hence, it has to be the case that there is such purchase by the assessee and mere acquisition of some right is not enough. In the instant case both assessee and his wife stated that purchase was by wife of assessee although in purchase deed, name of assessee was also there along with name was wife and purchase consideration of second residential property was paid by her out of joint/her individual bank account. Further, assessee's wife was having sufficient own funds in that joint bank account received as her share in sale proceeds of shares. Accordingly, disallowance of assessee's claim for deduction under section 54F was not justified.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, BANGALORE BENCH
 SUBSCRIBE FOR FULL CONTENT
|