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2022 (4) TMI 854 - AT - Income TaxDeduction claimed u/s. 54 - LTCG - Disallowance of deduction as the New property was purchased in the name of Appellant’s daughter - HELD THAT:- As per plain reading of section 54 of the Act, it is very clear that investment should be made in the name of the assessee to get benefit of deduction. However, various courts, including the case of CIT vs. V.Natarajan . [2006 (2) TMI 136 - MADRAS HIGH COURT] had taken a lenient view considering beneficial provisions of section 54 of the Act, and held that even if investments is made in the name of spouse or minor daughter, the deduction cannot be denied - we ourselves do not subscribe to the arguments advanced by the learned AR for the assessee to claim benefit of deduction u/s.54 of the Act, in respect of purchase of new property in the name of married daughter, because courts have considered the provisions and after considering fact that the assessee has purchased house property in the name of spouse has allowed benefit, because as per provisions of section 64 & 64(1A) of the Act, in case of purchase of property is in the name of spouse and minor children, income from such property is assessable in the hands of the assessee. Therefore, under those facts, the Courts have held that when property was purchased in the name of spouse, benefit of deduction cannot be denied. In the present case, the assessee has purchased property in the name of married daughter, although she was divorced, but she is an independent for purpose of the Income Tax Act. Therefore, we are of the considered view that benefit of deduction u/s.54 of the Act cannot be allowed, when property has been purchased in the name of married daughter. Assessing Officer as well as learned CIT(A), after considering relevant facts has rightly denied deduction claimed u/s.54 - Decided against assessee.
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