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2019 (4) TMI 1024 - AT - Income TaxExemption u/s 54F - assessee was owner of more than one residential house - one house was in Joint ownership - AR argued that the assessee was not the owner of flat and hence assessee was entitled for exemption u/s 54F - from the copy of gift deed, it is seen that the daughter of the assessee is minor and the gift has been accepted by her on behalf of her mother i.e. wife of the assessee - HELD THAT:- The word "own" would not include a case where a residential house is partly owned by one person or partly owned by other person(s). After the judgment of Hon’ble Supreme Court in the case of Seth Banarsi Dass Gupta [1987 (4) TMI 7 - SUPREME COURT] , the legislature could also amend the provisions of Section 54F so as to include part ownership. Since, the legislature has consciously not amended the provisions of section 54F, it has to be held that the word "own" in Section 54-F would include only the case where a residential house is fully and wholly owned by the assessee and consequently would not include a residential house owned by more than one person. However, by virtue of gift deed, the share of the assessee has already been transferred in the name of his daughter. Thus even if, as per the provision of section 27(1) of the Act, the assessee is considered to be a deemed owner of the Goa flat, but even then, assessee would still being a co-owner cannot be termed that Goa flat is fully and wholly owned by him, thus cannot be denied exemption. Therefore, in such circumstances, assessee could not be treated as ‘absolute owner’ of the residential flat situated at Goa and the exemption u/s 54F of the Act cannot be denied to the assessee. On the other hand, Ld. DR had not placed on record any contrary judgments to rebut the contentions of the assessee. Therefore we direct the AO to allow the exemption u/s 54 of the Act.- Decided in favour of assessee.
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