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2020 (8) TMI 722 - AT - Income TaxDeduction u/s 54F disallowed - As per CIT-A assessee cannot purchase any residential house other than the new asset within a period of one year after the date of transfer of the original asset - HELD THAT:- For triggering the provisions of the proviso (ii) to section 54F (1), the pre requirement is this that the assessee has purchased one more residential house other than the new asset within one year after the date of transfer of the original asset and this is not enough that some ownership right is acquired by him in such property within such time which has not accrued to him on account of purchase. Hence, it has to be the case that there is such purchase by the assessee and mere acquisition of some right is not enough. In the present case, both persons i.e. the present assessee and his wife Smt. Alka Dev are stating that the purchase is by Smt. Alka Dev, wife of the assessee although in the purchase deed, name of the assessee is also there along with the name of Smt. Alka Dev and purchase consideration of this second residential property is paid by her out of the joint/her individual bank account and we have seen that she was having sufficient own funds in that joint bank account received as her share in sale proceeds of the shares and this claim is accepted by CIT (A) also in her case and that order of CIT (A) has attained finality because the appeal of revenue against this order of CIT (A) got dismissed by the tribunal because of low tax effect. We delete the disallowance of the assessee’s claim for deduction u/s 54F made by the AO and confirmed by CIT (A). - Decided in favour of assessee.
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