2023 (1) TMI 720 - AT - Income Tax
Deduction claimed u/s 54 - assessee and her son have jointly invested the house property and are the joint owners of the house property having 50% right, title and interest over the property - Whether required under law that the house should be purchased in the name of the assessee only? - HELD THAT:- The property has been acquired jointly by the assessee and her son further the sale proceeds from the old house were received by the assessee on 10/09/2013 whereas the payment were made to JP Greens in two installments on 30/08/2013 and on 07/09/2013.
The amount have been paid from the joint account of the assessee along with her son. The assessee did not had any source of income to pay Rs. 1,00,00,000/- before she receives the sales proceeds from the old assets, there have been credit entries in the Joint Bank Account, which obviously was the income of assesse’s son and the amount of Rs. 1,00,00,000/- has been paid from the income of the son.
Since the assessee and her son have jointly invested the house property and are the joint owners of the house property having 50% right, title and interest over the property, the Assessing Officer is, therefore, correct in restricting the claim of the assessee u/s 54 by making an addition to the total income of the assessee. Therefore, we do not find any error or legal infirmity in the orders of the Lower Authorities. Thus, the grounds of appeal of the assessee dismissed.