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2022 (8) TMI 437 - AT - Income TaxExemption u/s 54F - Property to be purchased in the name of assessee - appellant has purchased two adjacent flats which were used as a single unit - section 54F have two important phrases, “an assessee being an individual” and “the assessee has purchased” - HELD THAT:- For availing the benefit of deduction u/s 54F the new asset shall be purchased in the name of the assessee. Applying the said proposition of law to the present case, we hold that the Flat No. 401 is not in the name of the assessee, hence it is not eligible for exemption u/s 54F of the Act. The assessee claimed that the amount for Flat No. 401 was invested by him. However, it is factually incorrect. It is observed from the documents filed in the paper book that the payments for Flat No.401 were made by Mrs. Uma Mundada. Thus the new house should have been purchased by the assessee. The section 54F does not say that the assessee shall invest in the new house but it says the assessee shall purchase new house. Therefore, even on this ground the rejection of claim of section 54F for the Flat No. 401 is justified. Therefore, we hold that the Assessing officer has rightly restricted assessee’s claim for deduction u/s 54F for Flat No.402 only. Accordingly, grounds of appeal raised by the assessee is dismissed.
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