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2017 (5) TMI 12 - ITAT MUMBAIExemption u/s. 54 - Assessment of capital gain - joint ownership - new property purchased was in the name of two persons namely the assessee and his brother - 100% consideration paid by the assessee - AO allowed 50% exemption u/s 54 - CIT(A) diallowed entire exemption - Held that:- There is no justification in the AO’s action, in so far entire investment was made by the assessee and only for the safety reason he has included the name of his brother. As found that in the assessment order itself at page 2, the AO has observed that entire cot of new property was borne by the assessee though the property is in the joint name with his brother. Under these facts and circumstances, there is no justification for giving 50% benefit of investment in the new house. The issue is also covered by the decision of hon’ble Delhi High Court in the case of CIT v Ravinder Kumar Arora (2011 (9) TMI 343 - DELHI HIGH COURT) wherein held that the assessee was entitled to full exemption u/s. 54F when the full amount was invested by the assessee even though the property was purchased in the joint names of the assessee and his wife. Thus no merit in the action of AO for restricting exemption u/s.54 to the extent of 50% of the value of the new house. The CIT(A) was also not justified in directing the AO to tax entire capital gain on sale of old property in the hands of assessee when 50% of the old house was owned by his wife and she had paid capital gain separately for her share of the house. - Decided in favour of assessee
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