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2018 (2) TMI 869 - AT - Income TaxEntitlement for exemption u/s 54F denied - denial of claim as new property required to be acquired by the HUF but not the individual - HUF and individual are two separate entities and if individual co-parcener acquires the property the same cannot be treated as HUF property - Held that:- HUF has sold the property and received 1/6th share of consideration amounting to ₹ 20,00,000/- out of which contributed ₹ 15 lakhs towards purchase of new property and the remaining amount of ₹ 25 lakhs was contributed by the co-parcener for acquiring the new property. Both the HUF and co-parcener of the property have entered into a memorandum of understanding to transfer the property in the name of HUF after complete repayment of the loan, which was granted to the individual co-parcener Mr. G. Rama Murthy Setty, S/o Nageswara Rao. The assessee also declared the rental income in its hands and the loan is being repaid by the HUF. Co-parcener is one of equal shareholder of the HUF. Under the similar facts and circumstances, the coordinate bench of ITAT, Chennai in the case of Purnachand & Family (HUF) cited (2017 (3) TMI 1175 - ITAT CHENNAI) held that the property acquired in the name of Karta is entitled for the deduction u/s 54F of the Act. - Decided in favour of assessee
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