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2017 (10) TMI 1148 - AT - Income TaxEligible for exemption u/s 54 - eligibility criteria - assessee share in the utilization of capital gain - Held that:- The assessee claims to have invested ₹ 20 lakhs (being ½ of her share) for purchase of new asset. However, we notice that assessee appears to have shown a total investment ₹ 50 lakhs in aggregate i.e. 30 lakhs from personal account and ₹ 20 lakhs (½ share) from joint account as against her obligation to the extent of ₹ 35 lakhs only. Also ambiguity exists on record as to whether the other joint owner (husband of the assessee) has availed claim of exemption, if any, upto ₹ 20 lakhs (being ½ of his share only) or entire ₹ 40 lakhs made through joint account towards purchase in his own right. The assessee, in our view, would be entitled to exemption to the extent of ₹ 20 lakhs being 50% of her share in the utilization of capital gain subject to the satisfaction of the AO that the aforesaid claim of payments from joint account has not been simultaneously availed by other joint owner also. The other portion on the investment claimed from the personal account of the assessee is stated to have been made after furnishing the return of income but before extended the due date of filing of return of income. However, as noted above, once the return has been furnished, the subsequent payments made towards purchase would not be eligible for exemption unless the same was first deposited in capital gain account scheme and utilized therefrom. Therefore, the assessee is entitled to relief to the extent of ₹ 20 lakhs only out of indexed capital gain subject, however, to the necessary verification of the claim of the other joint-owner as noted above. The decision relied upon by the assessee does not spell anything different. The issue is set aside and remanded back to the file of AO for the limited purpose of verification of extent of claim made by other joint-owner on payment of ₹ 40 lakhs towards purchase made out of joint Bank account as elaborated earlier. The assessee shall be at liberty to adduce the necessary evidences in this regard and remove prevailing ambiguity. Appeal of the assessee is allowed in part for statistical purposes.
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