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2018 (8) TMI 513 - AT - Income TaxDeduction u/s 54F - whether the deduction 54F can be restricted in proportion to the number of joint owners in the new asset disregarding the fact of full payment appropriated by the assessee towards such acquisition - assessee claims that entire deemed sale consideration (computed under s.50C of the Act) stands invested in the purchase of new asset (residential property) out of resources of Assessee - Held that:- We are in complete agreement with the claim of the assessee that where the investment in the new asset has been made (alongwith other co-owners) and where all money has been paid by the assessee, it is the assessee which will be entitled to deduction in respect of investments. What is crucial is the act of investment which will override the fact of joint ownership in so far as eligibility of deduction under s. 54F is concerned. The case of the assessee is covered by the decision of the Tribunal in the case of Jitendra V Faria [2017 (5) TMI 12 - ITAT MUMBAI] where the decisions of several High Courts were referred while holding the issue in favour of the assessee. In conclusion, where the assessee purchased new house out of his money, exempt ion under s.54F cannot be denied to the assessee, regardless of the fact that the assessee holds the property in joint ownership alongwith other parties as per the purchase deed. Consequently, we direct the AO to grant deduction under s. 54F of the Act with reference to the amount utilized by the assessee towards purchase of new asset in joint ownership. - decided in favour of the assessee
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