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2015 (4) TMI 908 - AT - Income TaxExemption / eduction u/s 54F - more than one residential house - assessee claimed that old proerty was gifted to minor daughter through an oral HIBA - Validity of oral gifts - Held that:- An oral gift already made was reduced to writing at a later point of time on the same day i.e., on 18.8.2008. This would be clear from a reading of the affidavit filed in confirmation of oral gift, which we have already extracted in the earlier part of this order. Therefore, the gift in question satisfies all the requirements of law and has to be held as valid in law. Since the gifts are held to be valid, the assessee cannot be regarded as owner of the old property. Therefore, the assessee will be the owner of only one property. Apart from this property, the assessee claims to have purchased a plot of land over which a new residential house is sought to be constructed. Therefore, the restriction in the proviso to section 54F(1) of the Act are not attracted in the case of assessee. The CIT(A) did not take note of the error of omission of these loans in the statement of affairs; but chose to rely only on the disclosure of asset which were claimed to be wrongly made in the statement of affairs. In our view, the explanation offered by the assessee is bona fide and it has been shown by the assessee that the statement of affairs on which the Revenue placed reliance was not reliable as it contained errors. We are, therefore, of the view that the assessee satisfies all the conditions for grant of exemption u/s. 54F of the Act. We accordingly direct the AO to allow the deduction claimed by the assessee. - Decided in favour of assessee.
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