TMI Blog2018 (8) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... which will be entitled to deduction in respect of investments. What is crucial is the act of investment which will override the fact of joint ownership in so far as eligibility of deduction under s. 54F is concerned. The case of the assessee is covered by the decision of the Tribunal in the case of Jitendra V Faria [2017 (5) TMI 12 - ITAT MUMBAI] where the decisions of several High Courts were referred while holding the issue in favour of the assessee. In conclusion, where the assessee purchased new house out of his money, exempt ion under s.54F cannot be denied to the assessee, regardless of the fact that the assessee holds the property in joint ownership alongwith other parties as per the purchase deed. Consequently, we direct the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.148 of the Act. In the course of scrutiny assessment, the AO observed that the assessee alongwith other co-owners sold certain parcel of land situated at Narol, Ahmedabad on which the assessee has offered long term capital gains of ₹ 2,47,131/- attributable to his share in sale of coownershipland on a sale consideration at tributable to the coownership share of the assessee declared at ₹ 21,60,720/- by the assessee in the return of income. The AO however substituted the aforesaid sale consideration by circle rate/ jantri value (determined by Stamp Valuation Authority) determined at ₹ 82,90,800/- with the aid of Sect ion 50C of the Act. The assessee claimed eligibility for deduction under s.54F of the Act on the ground t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der of AO. 5. Aggrieved, the assessee preferred appeal before the Tribunal. 5.1 The learned AR for the assessee reiterated the facts noted above and submitted that the purchase of the new asset (resident ial house) was undoubtedly made in the joint name alongwith son of the assessee but with a purpose. It was to safeguard inheritance and smooth transact ion of property in the event of unforeseen contingencies etc. However, notably the entire cost towards acquisi tion has been made from the resources of the assessee. The other co-owner i.e. son of the assessee has not invested any amount for purchase of new house on which the assessee has claimed deduction under s.54F of the Act. The learned AR thus submitted that notwithstanding the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the new asset disregarding the fact of full payment appropriated by the assessee towards such acquisition. In the instant case, the assessee claims that entire deemed sale consideration (computed under s.50C of the Act) stands invested in the purchase of new asset (residential property) out of resources of Assessee herein. The AO, on the other hand, claims that the new asset has been purchased in the joint name and therefore, utilizat ion of sale considerat ion has to be determined on proportionate basis. The AO accordingly claimed that the assessee is entitled to relief under s.54F only to the extent of his share in the co-ownership of the new asset i .e. one half of the purchase consideration. 7. We do not find any rationale in the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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