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TMI Blog2017 (2) TMI 728X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 (6) of the Income-tax Act, 1961 (for short 'the Act') qua the assessment year 2013-14 on the grounds inter alia that :- "1. The Ld. CIT (A) has erred in law and on facts in allowing renovation charges in new house even if the bills/vouchers could not be produced by the assessee. 2. The Ld. CIT (A) has erred in law and on facts in allowing deduction u/s 54 despite the fact that the new residential house was purchased in joint names and the bank account form which payments were made was also a joint account. 3. The Ld. CIT (A) has erred in law and on facts in allowing deduction u/s 54EC despite the fact the bonds was purchased in joint names and the bank account from which payments were made was also a joint account. 4. The order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsons, namely, the assessee and her daughter-in-law, Smt. Purabi Dutt. Assessee was called upon to furnish copy of bank account and bills & vouchers of expenses of renovation charges amounting to Rs. 14,88,820/- but assessee filed the bills & vouchers of expenses to the extent of Rs. 13,00,000/- only and as such, the AO disallowed the difference of Rs. 1,88,820/- as expenses made on renovation charges. AO computed the net income from long term capital gain of the assessee as under :- Capital Gain Rs.5,32,68,930 Less deduction u/s 54 Rs.1,87,33,472 Less deduction u/s 54EC Rs.16,66,666 Net Long Term Capital Gain Rs.3,28,68,792 5. AO made an addition of Rs. 2,37,19,964/- (Rs.3,28,68,792/-- Rs. 91,48,828/- returned on accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et. So, we find no illegality or perversity in the findings returned by the CIT (A). This ground is determined against the revenue. GROUND NO.2 9. Ld. CIT (A) deleted the addition of Rs. 1,87,33,472/- made by the AO on the ground that the assessee purchased the property in the joint name by returning the following findings :- "13. I have duly considered the facts and circumstances of the case. It has been judicially held in a number of cases, details of which have been cited by the counsel for the assessee in the submission made before the undersigned, that it does not matter if the property is purchased in a joint name or for that matter even in the name of a close relative. To avail the benefit under section 54, it is the source of fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who was the first holder of the said bank account. Perusal of the same shows that there are no other major credit entries in the said account other than those contributed by the assessee out of her share of the sale of the house property at 22 Kalidas Road Dehradun. All the cheques pertaining to the purchase of property at Kolkata are seen to emanate from this account and out of the funds so contributed by the assessee. Thus there is no reason to assume that Smt Purabi Dutt had contributed any amount towards the purchase of the property at Kolkata. That being the case there is no reason to deny the assessee the benefit of deduction under section 54, to the extent of Rs. 1,87,33,472/- only on account of the fact that the assessee purchased ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Smt. Purabi Devi has undisputedly not invested any amount towards making payment of sale proceeds of the new property. 12. To support his contentions, ld. AR for the assessee relied upon the judgments cited as - (i) CIT vs. Ravinder Kumar Arora - (2012) 342 ITR 38 (Del.); and (ii) CIT vs. Kamal Wahal - (2013) 351 ITR 4 (Del.), rendered by Hon'ble Delhi High Court. The ratio of both the judgments is that, "when new residential property has been purchased by the assessee in joint names of assessee and his close relative by investing the entire amount of long term capital gain, the assessee is entitled for full exemption u/s 54F of the Act." The ration of the judgment in the cases of CIT vs. Ravinder Kumar Arora and CIT vs. Kamal Wahal (supra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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