TMI Blog2019 (7) TMI 436X X X X Extracts X X X X X X X X Extracts X X X X ..... not made in the return is incorrect and not in accordance with law. Agree with the assessee that the appellate authority has power to consider a claim not made in the return. Allowability of deduction u/s 54F on account of purchase of the residential property by the assessee in the name of his wife is concerned, it has been held in various decisions that assessee cannot be denied the benefit of deduction u/s 54F when the property has been purchased in the name of the wife of the assessee instead of purchasing the same in the name of the assessee himself. Case of CIT vs. Shri Kamal Wahal [ 2013 (1) TMI 401 - DELHI HIGH COURT] has held that the new residential house need not be purchased by the assessee in his name nor is it necessary th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal income of ₹ 3,44,730/-. During the course of assessment proceedings, the AO noted that the assessee along with four others has sold his land in Amarpur Kondala, Aligarh for a consideration of ₹ 3,85,00,000/- vide sale deed dated 14.01.2015. The assessee being 1/5th shareholder received ₹ 77,00,000/- from the said land sale. The assessee claimed exemption on capital gain from the land deal in the return of income treating the land as agricultural land. The AO, therefore, asked the assessee to explain as to why the land should not be treated as capital asset and capital gain tax charged on the capital gain. It was submitted by the assessee that the land was an agricultural land and does not fall within the meaning of cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO was concerned, he upheld the same. 4. Aggrieved with such order of the CIT(A) the assessee is in appeal before the Tribunal by raising following grounds of appeal: 1. On the facts and circumstances of the case, the order passed by Ld. CIT(A) is bad both in eyes of law and on facts. 2. On the facts and circumstances of the case, the order passed by Ld. CIT(A) is not a speaking order as per section 250(6) of the Income Tax Act, 1961. 3. The Ld. Commissioner of Income Tax (Appeals) has erred on facts and in law in upholding the addition made by Ld. AO by holding that the agricultural land sold by assessee at Amarpur Kondala Tehsil of Aligarh district, Uttar Prades ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entitled to deduction u/s 54F of the Act since the purchase was not made in the name of the assessee but in the name of the wife of the assessee is concerned, he submitted that the entire payments were made out of the bank account of the assessee and, therefore, merely because the property has been purchased in the name of the wife of the assessee, the deduction u/s 54F of the Act cannot be denied to the assessee. 6. Referring to the decision of Hon ble Delhi High Court in the case of CIT vs. Ravinder Kumar Arora reported in 342 ITR 38 he submitted that the Hon ble High Court has held that where the assessee has included the name of his wife and the property has been purchased jointly in the names of the assessee and his wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is wife when such deduction was not claimed in the original return or in the revised return and was claimed for the first time before the CIT(A). The Hon ble Bombay High Court in the case of CIT vs. Pruthvi Brokers and Shareholders Pvt. Ltd. reported in 349 ITR 336 has held that the appellate authorities have power to consider a claim not made in the return of income. While doing so, the Hon ble High Court has relied on various decisions including the decision of Hon ble Supreme Court in the case of Goetze (India) Ltd. vs. CIT reported in 284 ITR 323 and the decision of Hon ble Delhi High Court in the case of CIT vs. Jai Parabolic Springs Ltd. (2008) reported in 306 ITR 42. It has been held by the Hon ble Delhi High Court in the case of Jai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in his name nor is it necessary that it should be purchased exclusively in his name for claiming deduction u/s 54. Accordingly, the deduction u/s 54F was allowed where the property was purchased in the name of the wife of the assessee. The Hon ble Madras High Court in the case of CIT vs. V. Natarajan reported in 287 ITR 271 has allowed the deduction u/s 54 where the house was purchased in the name of the assessee s wife. I find the Hon ble Karnataka High Court in the case of DIT vs. Mrs. Jennifer Bhide reported in 349 ITR 80 has held that where the entire consideration has flown from her bank account, merely because either in the sale deed or in the bond, her husband s name is also mentioned, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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