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2021 (4) TMI 299 - AT - Income TaxExemption u/s 54 - Long Term Capital Gains earned by the assessee being invested in another property - Capital Gains invested in the property purchased in name of her married daughter and son-in-law - AO had restricted the claim of exemption to the extent of assessee’s share in new property purchased, being 34 % only on her own share, while the Ld.CIT(A) allowed the entire claim on noting the fact that the entire capital gains earned by the assessee had been invested in the new property purchased - only contention of the Revenue being that the decision of Dinesh Verma [2015 (7) TMI 486 - PUNJAB & HARYANA HIGH COURT] has not been followed by the Ld. CIT(A) - HELD THAT:- We find that the Ld.CIT(A) had taken note of the said decision. He had, we find, taken note of the decision and applied the same to the facts of the present case noting categorically that though the said decision pertained to claim of exemption u/s 54 B of the Act, yet the ratio would be applicable in the instant case also. Assessee had invested the entire Long Term Capital Gains in the purchase of residential property within the stipulated time, while the AO had restricted the exemption to 34 % of the Long Term Capital Gains without acknowledging the fact that the assessee had invested the entire Long Term Capital Gains in the purchase of residential property. We have gone through the decision of the Hon’ble Jurisdictional High Court, reproduced in the impugned order, and find that it had allowed exemption of capital gains, to the extent of the sale consideration invested by the assessee in the new asset, denying the exemption to the extent invested by his wife, on noting the fact that the investments in the new property had been made both by the assessee and his wife. The Hon’ble High Court held that the assessee would be entitled to the benefit of exemption u/s 54 B only on the amount invested by him after the sale of his original property. Drawing parity from the same, the Ld. CIT(A), we find, has in the present case, noted the fact that the assessee has invested her entire sale consideration in the new property and, therefore, is entitled to exemption of the entire amount of Long Term Capital Gains. We do not find any infirmity in the same.- Decided against revenue.
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