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2021 (8) TMI 470 - AT - Income TaxDenial of exemption u/s 54F - property in question was in the name of assessee’s father and the assessee was staying along with his family on the first floor of the building for the last more than 10 years - HELD THAT:- Here is a case in which the assessee correctly showed a sum of ₹ 60 lakhs as full value consideration for the transfer of capital asset and deposited the said amount in Capital gain account scheme for exemption of claim u/s 54F. Considering the totality of the facts and circumstances of the case, it is evident that the amount of ₹ 60 lakhs was received by the assessee as consideration for transfer of his right to occupy the property. As such, we are unable to give any other colour to the transaction, which has been accepted by the Department as such in the hands of the assessee’s father. Even if for a moment, it is accepted that the sum of ₹ 60 lakhs was received by the assessee from his father not towards consideration for transfer of right to occupy the property, at the most, it would amount to a gift in his hands, which is again not chargeable to tax. The authorities below have characterized ₹ 60 lakhs as income chargeable to tax under the head ‘Income from other sources’. However, no specific clause of section 56 of the Act has been brought to our notice encompassing the prevailing situation within its purview. We, therefore, overturn the impugned order and hold that the assessee rightly computed long term capital gain of ₹ 60 lakhs and then claimed exemption u/s 54F of the equal amount. - Decided in favour of assessee.
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