TMI Blog2016 (7) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... interest retained by the assessee’s mother. Therefore, this Tribunal is of the considered opinion that the house property conveyed to the assessee by means of settlement deed subject to life interest over the property cannot be a reason for denying deduction under Section 54F of the Act. AO is directed to grant exemption u/s 54F of the Act. - Decided in favour of assessee. - ITA No.2288/Mds/2015 - - - Dated:- 12-5-2016 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER For The Appellant by : Shri V.S. Jayakumar, Advocate For The Respondent : Sh. A.B. Koli, JCIT ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER: This appeal of the assessee is directed against the order of the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fferent from absolute ownership. Ownership of a residential house means ownership to the exclusion of all others. Therefore, the Tribunal found that the joint ownership of a residential house cannot be a reason to deny exemption under Section 54F of the Act. The Ld.counsel has also placed reliance on the judgment of Madras High Court in CIT v. K. Ramachandra Chettiar (1983) 141 ITR 771, judgment of Madras High Court in R. Janardhanan v. CWT (1987) 165 ITR 144 and on the decision of Delhi Bench of this Tribunal in WTO v. Smt. Kaushalya Rani (1989) 28 ITD 435. 3. On the contrary, Sh. A.B. Koli, the Ld. Departmental Representative, submitted that even though the life interest was retained by the settlor in the settlement deed, the settlemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e property conveyed by her mother by means of settlement deed is only a partial interest on the property and such partial interest cannot be considered to be full ownership for the purpose of denying the exemption under Section 54F of the Act. 5. We have carefully gone through the provisions of Section 122 of the Transfer of Property Act, 1882. Section 122 of that Act defines Gift as follows:- Gift is the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee. In view of the above definition, the gift shall be voluntary and without consideration. In the case before us, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest retained by the assessee s mother. Therefore, this Tribunal is of the considered opinion that the house property conveyed to the assessee by means of settlement deed subject to life interest over the property cannot be a reason for denying deduction under Section 54F of the Act. By following the decision of Mumbai Bench of this Tribunal and for the reason stated therein, this Tribunal is unable to uphold the orders of the lower authorities. Accordingly, the orders of the lower authorities are set aside. The Assessing Officer is directed to grant exemption under Section 54F of the Act. 5. In the result, the appeal filed by the assessee is allowed. Order pronounced on 12th May, 2016 at Chennai. - - TaxTMI - TMITax - Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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