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2021 (9) TMI 505 - AT - Income TaxDeduction u/s.54F - Assessee holding more than one property - joint ownership - as per AO Assessee has relinquished his rights on the two flats by settling in favour of his wife only to avoid tax - HELD THAT:- We find that the Assessee has relinquished his half share in two properties in favour of his wife. It is not the case of the Department that the Assessee had transferred the entire property which is in the name of the Assessee. It is as a matter of convenience between the husband and wife, this arrangement is made and therefore it can be safely concluded that the relinquishment of the half share of his two properties is a family arrangement which cannot be considered as a tax avoidance plan. In view of the above, the Assessing Officer is not correct in denying the benefit of exemption u/s.54F of the Income Tax Act, 1961 to the Assessee. Though the Assessee had transferred the property in the name of his wife, yet he is the owner of the property and is not entitled for claiming the exemption of Section 54F - A fiction created by one provisions of the Act cannot be super-imposed on another provisions of the Act which has a fiction. Section 54F of the Income Tax Act, 1961 is a provision granting deduction to the Assessee and therefore, it has a fiction. Respectfully following the decision of Mr. Ajit Thomas, Chennai [2015 (11) TMI 1847 - ITAT CHENNAI] AND [2016 (8) TMI 1545 - MADRAS HIGH COURT] we hold that the Assessee is entitled to claim the benefit of Section 54F of the Income Tax Act, 1961. Accordingly, we cancel the orders passed by both the lower authorities and we direct the Assessing Officer to allow the benefit of claim made by the Assessee u/s.54F. - Decided in favour of assessee.
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