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TMI Blog2014 (1) TMI 1271X X X X Extracts X X X X X X X X Extracts X X X X ..... p; (a) A wet agricultural land having an extent of 3 Acres and 94 cents in Kolavennu Village was purchased in the name of his younger daughter named Smt. Sodisetty Swapna for a consideration of Rs.52.00 lakhs. (b) One flat at Gochibowli Village, Serilingampalli Mandal, Ranga Reddy District was purchased in the name of her eldest daughter named Smt. Kapa Subhashini for a consideration of Rs.58.00 lakhs. While computing long term capital gain on sale of agricultural land located at Peda Pulipaka village, the assessee claimed deduction u/s 54B of the Act in respect of the agricultural land purchased in the name of her younger daughter and also claimed deduction u/s 54F of the Act in respect of the flat purchased in the name of her eldest daughter. The assessee claimed those deductions on the plea that the consideration for purchase of both the properties were given by her out of sale proceeds realized on sale of agricultural land. The assessee further submitted that she has entered into "possession purchase agreements" with her two daughters to comply with the provisions of sec. 54B and 54F of the Act. It was further contended by the assessee that her daughters should b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )(2010)(P&H) (b) CIT Vs. Natarajan (287 ITR 271)(Mad) (c) Deputy Director of Income tax (Intl. Taxation) Vs. Jennifer Bhide, ITA No.169 of 2011 dated 26th September, 2011 (Karnataka) (d) CIT Vs. Ravinder Kumar Arora (Delhi) ITA No.1106 of 2011 dated 17th Sept, 2011. (e) K.G.Vyas Vs. Seventh Income tax Officer, 26 TTJ 491 (Bom)(1986) In the cases of (a), (c), (d) and (e), referred above, the Ld CIT(A) noticed that the assessees' therein had purchased the eligible property in joint names, i.e., in their name and in the name of relatives. In the case of (b) referred above, the property was purchased in the name of wife of the assessee. Hence the Ld CIT(A) held that the assessee could not place reliance on the above said case laws. Accordingly, he affirmed the order passed by the assessing officer. Aggrieved, the assessee has filed this appeal before us. 6. The Ld Counsel for the assessee placed reliance on the decision of Hon'ble jurisdictional Andhra Pradesh High Court in the case of Late Mir Gulam Ali Khan Vs. CIT (1987)(165 ITR 228) and submitted that the jurisdictional High Court in the above said case has held that the wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal and in this regard, he invited our attention to another decision rendered by the jurisdictional High Court in the case of State of Andhra Pradesh Vs. Commercial Tax Officer (1988)(169 ITR 564). 7. The Ld A.R, apart from placing reliance on the case law relied upon before the Ld CIT(A), also placed reliance on the following decisions:- (a) CIT-XII Vs. Kamal Wahal (2013)(84 CCH 024)(Delhi). In this case, the assessee purchased a property in the name of his wife and claimed exemption u/s 54F of the Act. The High Court allowed the said claim. (b) Vinay Mishra Vs. ACIT (2012)(79 DTR (Bang.)(Trib.) 1. In this case, the assessee purchased a house property in USA. The exemption claimed u/s 54F of the Act was allowed by the Tribunal. (c) Shri Grandhi Kamaraj Mangaraj (ITA No.432/CIT(A)/VJA/10-11). In this case, the very same Ld CIT(A) allowed the claim of deduction u/s 54 of the Act in respect of the property purchased in the joint name of assessee and his wife. (d) Shri N.Ramkumar Vs. ACIT (ITA No.1901/Hyd/2011) dated 10-08-2012. In this case, the Hyderabad bench of Tribunal allowed the claim of deduction u/s 54F of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given to an assessee only if the new property is purchased in his own name. In this regard, the Ld D.R placed reliance on the following case law. We are extracting the Head notes of the said case law also below:- (a) Jai Narayan Vs. ITO (2008)(306 ITR 335). - Capital gains - Exemption under s. 54B - Investment in the names of assessee's son and grand son - Sec. 54B nowhere suggests that the legislature intended to advance the benefit of the said section to an assessee who purchases agricultural land even in the name of a third person - Term "assessee" is qualified by the expression "purchased any other land for being used for agricultural purposes"- This necessarily means that the new asset has to be in the name of the assessee himself - Therefore, purchase of agricultural land by the assessee in the name of his son or grandson does not qualify for exemption under s. 54B. (b) Prakash Vs. Income tax Officer & Ors (2009)(312 ITR 40). - Capital gains - Exemption under s. 54F - Purchase of new property in the name of son - New property must be owned by the assessee having legal title over the same - Assessee admittedly purchased the new property in the name ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... longed to assessee HUF whereas the flat was purchased in the individual name of the Kartha along with his mother - Thus, the new house was not purchased by the same assessee who sold the agricultural land - Hence, exemption under s. 54F was not allowable. 11. We have heard the rival contentions and carefully the record. Sub section (1) of sec. 54B of the Act reads as under:- "54B(1) Subject to the provisions of sub-section (2), where the capital gain arises from the transfer of a capital asset being land which, in the two years immediately preceding the date on which the transfer took place, was being used by the assessee or a parent of his for agricultural purposes (hereinafter referred to as the original asset), and the assessee has, within a period of two years after that date, purchased any other land for being used for agricultural purposes, then, instead of the capital gain being charged to income-tax...." Sub-section (1) of sec. 54F reads as under:- "54F(1) Subject to the provisions of sub-section (4), where, in the case of an assessee being an individual or a Hindu Undivided family, the capital gain arises from the transfer of any long term cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liar facts of the case, the Hon'ble jurisdictional High Court held that the term "assessee" shall include legal representative also. In our view, the liberal view taken by the High Court cannot be stretched in each and every case, where the property was not purchased in the name of the assessee, who sold the property. Accordingly, in our view, the assessee herein cannot derive support from the said case law. 13. We have gone through all other case law, which were relied upon by Ld A.R during the course of his arguments. We notice that, in all those cases, the new property was either purchased in joint names, i.e., in the name of the assessee and others, or it was purchased in the name of spouse or minor daughter. In our view, the Courts have considered the investments made in the name of wife or minor daughter as an investment made by the assessee himself for the reason that there was no real intention to provide consideration for the benefit of wife/minor daughter alone. 14. In the instant case, undisputedly, the investments have been made in the name of married daughters and apparently both of them are also majors. Thus, it is not a case of joint ownership along with the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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