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2018 (11) TMI 1123 - ITAT HYDERABADDisallowance of exemption U/s.54F - investment by the assessee of the capital gains in purchase or construction of a residential house - property purchased in the name of wife - Held that:- Andhra Pradesh High Court in the case of Late Gulam Ali Khan vs. CIT [1984 (12) TMI 9 - ANDHRA PRADESH HIGH COURT] wherein it was held that the object of granting exemption u/s 54F of the Act, is that the house should have been purchased for residential purposes, must be given exemption so far as capital gains are concerned that the word "assessee" must be given a wide and liberal interpretation so as to include his legal heirs also and there is no warrant for giving too strict interpretation on the word "assessee" as that would frustrate the object of granting the exemption. In the case before us, the assessee and his wife are independent income tax assessee and the assessee already owned one house at Kilpauk, Chennai. The assessee therefore, cannot be said to have invested in order to avoid capital gains to tax in his hands, as u/s 54F(1) the assessee is entitled to exemption u/s 54F even if he already holds one property in his name. Therefore, the investment by the assessee of the capital gains in purchase or construction of a residential house at Alagappa Nagar, Chennai in the name of his wife will not disentitle the assessee from exemption u/s 54F of the Act. - Decided in favour of assessee.
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