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2019 (7) TMI 436 - AT - Income TaxDeduction u/s 54F - property has been purchased by the assessee in the name of his wife - claim made for the first time before the CIT(A) - HELD THAT:- The Hon’ble Bombay High Court in the case of CIT vs. Pruthvi Brokers and Shareholders Pvt. Ltd. [2012 (7) TMI 158 - BOMBAY HIGH COURT] has held that the appellate authorities have power to consider a claim not made in the return of income. There was no prohibition on the powers of the Tribunal to entertain an additional ground which is according to the Tribunal arose in the matter and for the just decision of the case. Finding of the CIT(A) that the appellate authority has no power to consider a claim not made in the return is incorrect and not in accordance with law. Agree with the assessee that the appellate authority has power to consider a claim not made in the return. Allowability of deduction u/s 54F on account of purchase of the residential property by the assessee in the name of his wife is concerned, it has been held in various decisions that assessee cannot be denied the benefit of deduction u/s 54F when the property has been purchased in the name of the wife of the assessee instead of purchasing the same in the name of the assessee himself. Case of CIT vs. Shri Kamal Wahal [2013 (1) TMI 401 - DELHI HIGH COURT] has held that the new residential house need not be purchased by the assessee in his name nor is it necessary that it should be purchased exclusively in his name for claiming deduction u/s 54. Accordingly, the deduction u/s 54F was allowed where the property was purchased in the name of the wife of the assessee. Assessee should not be denied the benefit of deduction u/s 54F merely because the property has been purchased in the name of the wife of the assessee when the money has been flown from the bank account of the assessee, wherein the sale proceeds were deposited. However, this fact needs verification. Restore this issue to the file of the AO with a direction to verify the bank account of the assessee that the sale proceeds of the land sold was deposited in the bank account and has been utilized for the purchase of the residential property in the name of the wife of the assessee. If the AO finds the same to be correct then he is directed to allow the claim of deduction u/s 54 - Assessee are accordingly allowed for statistical purposes.
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