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2013 (4) TMI 636 - AT - Income TaxComputation of capital gains - deduction u/s 48 or u/s 54 - consideration paid to wife under the condition of separation - cost of the flat which the assessee was required to provide to his wife who had separated from him. Held that - Respectfully following the decision of the Hon'ble Karnataka High Court in the case of Director of IT, International Taxation Vs. Mrs. Jennifer Bhide [2011 (9) TMI 1961].we are of the considered opinion that the flat purchased by the assessee in the name of his wife out of the sale consideration of flat in the name of the assessee should be considered as allowable deduction u/s.54(2) of the Income Tax Act. Since in the instant case the flat in the name of the assessee was sold on 08-05-2006 for Rs. 50 lakhs and since flat in the name of the wife and daughter has been purchased on 22-03-2006 for a consideration of Rs. 28 lakhs, plus registration expenses etc, therefore, the assessee is entitled to benefit of deduction u/s.54(2) in respect of the property purchased in the name of his wife. However, since the total cost of the property including stamp duty and registration expenses is not verifiable, we deem it proper to restore the issue to the file of the AO with a direction to verify the details and allow the deduction accordingly in respect of the flat purchased by the assessee in the name of his wife instead of the flat purchased in his name. We hold & direct accordingly.
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