The Tax Publishers2022 TaxPub(DT) 5255 (Pune-Trib)

INCOME TAX ACT, 1961

Section 54F

For availing benefit of exemption under section 54F the new asset shall be purchased in the name of the assessee. As the Flat No. 401 was not in the name of assessee, hence, it was not eligible for exemption under section 54F. Though assessee pleaded that amount for Flat No. 401 was invested by him, however, it was factually incorrect. The home loan was in joint name because the bank normally ask for joint name to secure the repayment, however, payments were made by Uma Mundada, i.e., assessee's wife, therefore, AO rightly restricted assessee's claim for deduction under section 54F for Flat No. 402 only.

Capital gains - Exemption under section 54F - Property purchased in the name of spouse -

Assessee sold a property on 30-3-2013 for Rs. 1,51,00,000 and purchased two flats bearing Flat No. 401 and 402. Assessee claimed exemption under section 54F in the computation of long-term capital gain. AO allowed the claim of the assessee only for Flat Nos. 402 for the reason that Flat No. 401 which was purchased in the name of assessee's wife. Assessee pleaded that amount for Flat No. 401 was invested by him. Held: For availing benefit of exemption under section 54F the new asset shall be purchased in the name of the assessee. As Flat No. 401 was not in the name of assessee, hence, it was not eligible for exemption under section 54F. Though assessee pleaded that amount for Flat No. 401 was invested by him, however, it was factually incorrect. The home loan was in joint name because the bank normally ask for joint name to secure the repayment, however, payments were made by Uma Mundada, i.e., assessee's wife therefore, AO rightly restricted assessee's claim for deduction under section 54F for Flat No. 402 only.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2013-14



IN THE ITAT, PUNE BENCH

S.S.GODARA, J.M. & DIPAK P. RIPOTE, A.M.

Dilip B. Mundada v. Dy. CIT

ITA No. 1764/Pun/2019

15 July, 2022

Assessee by: Pramod S. Shingte, AR

Revenue by: Arvind Desai, DR

ORDER

Dipak P. Ripote, A.M.

This appeal filed by the assessee is directed against the order of learned Commissioner (Appeals)-8, Punes, Order, dt. 24-9-2019 for the assessment year 2013-14. The appellant Assessee has raised the following grounds of appeal:

1. On the facts and in the circumstances of the case and in law the Lower Authorities has erred not granting the exemption under section 54F under Income Tax Act, 1961 for Rs.24,69,227 without appreciating the fact that your appellant has purchased two adjacent flats which were used as a single unit and therefore appellant is entitled for exemption as claimed. We pray accordingly.

The appellant craves for to leave, add, alter, modify, delete above ground of appeal before or at the time hearing, in the interest of natural justice.

2. Brief facts of the case are that during the year under consideration the assessee Dilip B.Mundada sold a property on 30-3-2013 for Rs.1,51,00,000. The assessee claimed to have purchased two flats as under :

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