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2017 (8) TMI 1254 - AT - Income TaxDenying the exemption to the Appellant u/s 54F - Property is purchased in the wife's name and amount paid for purchase is from loan sanctioned jointly in assessee and his wife's name in the loan sanction letter - whether the investment in the new property can be treated as investment made by the assessee - Held that:- We find that the wife of the assessee is an independent taxpayer having her own sources of income. - it cannot be said that the assessee has made investment for purchase of the property due to the reason that loan has been primarily sanctioned to the wife of the assessee, who is having title over the property and the assessee has been joined in the loan for the purpose of repayment of the loan. The repayment of loan by the assessee is a transaction different from the transaction of investment in the property. Moreover, the assessee has not submitted any evidence of repayment of loan by him. - Benefit of exemption denied - Decided against the assessee. Payments towards construction/renovation in the new property - Held that:- For verification of the fact that payments of ₹ 10 lakh and 20 lakh paid respectively on 07/01/2008 and 13/01/2008 were towards construction or renovation of the new property, we feel it appropriate to restore the issue to the file of the Assessing Officer, with the direction to the assessee to produce / furnish all necessary evidence in support that construction/renovation work as mentioned in finishing agreement was carried out by seller of the property. In this regard, the assessee should furnish copy of return of income of the seller and income expenditure account showing such receipts from contract work and expenses incurred by her for carrying out construction/renovation work on the property or any other evidences which could establish that work of construction/renovation was actually carried out in the property and the said payment of ₹ 10 lacs and 20 lacs were towards such construction/renovation. If the amounts are found to be towards construction of the new property, then the Assessing Officer is directed to consider the deduction u/s 54F of the Act in accordance with law. Exemption under section 54F in respect of the consideration of ₹ 2 Lacs received by the assessee in cash - Held that:- there is no dispute that the amount of ₹ 2 lacs is part of sale consideration and the long-term capital gain on sale of the property. Since we have partly restored the issue of deduction under section 54F of the Act, in respect of the investment of ₹ 30 Lacs, we also restore the issue of claim of deduction u/s 54F of the Act against the sale consideration of ₹ 2 lacs to the file of the Assessing Officer for consideration in accordance with law.
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