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| The Tax Publishers2021 TaxPub(DT) 0365 (Pune-Trib) INCOME TAX ACT, 1961
Section 74
Where the flat was purchased by assessee and her daughter as joint owners and the same was said as co-owners, then profit or loss in the transaction would have to be shared by both of them as joint owners and since Property transferred resulted in long-term capital loss, only half of share in total loss was rightly determined in the hands of assessee.
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Loss - Capital loss - Allowability/Quantification - Flat sold registered jointly in the name of assessee and her daughter
Consideration for purchase of flat paid out of bank account jointly operated by assessee and her daughter and sale consideration also went back to the same account-capital loss arising from sale of flat rightly restricted to half in the hands of assessee. Held: Since the flat in question was purchased as joint owners and also transferred by the two persons as joint owners, there is absolutely no doubt that the profit or loss in the transaction will also have to be shared by both of them as joint owners, and not in the hands of one person to the exclusion of the other. The contention of the assessee that she offered full rental income from the flat as her own does not change the ownership of property. If such rental income has been wrongly assessed fully in the hands of the assessee, the remedy lies in correcting such assessment of income, and not making a further wrong assessment by taxing the entire capital gain/loss in the hands of the assessee. [Paras 4 & 5]
Distinguished:S. Rajalakshmi v. ITO (2018) 409 ITR 157 (Bom-HC) : 2018 TaxPub(DT) 7656 (Bom-HC).
REFERRED :
FAVOUR : Partly in assessee's favour.
A.Y. : 2016-17
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