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TMI Blog2024 (9) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... ng grounds of appeal: "1. On the facts and circumstances of the case as well in law on the subject, the learned CIT (Appeals) has erred in confirming the action of assessing officer in disallowing the claim of deduction of Rs. 9,61,49,283/- u/s 54F of the Act while calculating Long term capital gain. 2. It is therefore prayed that the above disallowance made by the assessing officer and confirmed by the CIT(A) may please be allowed. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal." 2. Brief facts of the case are that the assessee is individual, filed her return of income for A.Y. 2020-21 on 31/03/2021 declaring total income at Rs. 52,28,540/-. The case was select ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use with her husband for construction of a residential property. The plot of on which construction of residential house is made, is in the name of her husband. The approval plan was sanctioned by the Surat Municipal Corporation (SMC) in the name of her husband. Ownership is also vested with her husband. She made a mutual understanding for bearing part of construction cost with her husband. The assessee by referring the provisions of Section 54F of the Act, stated that it could be appreciated that there is no restriction in Section 54F that assessee should construct a residential house on a plot of land owned by herself only. To support her submission, the assessee also relied on the decision of Hon'ble Karnataka High Court in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer. The ld. CIT(A) also tried to distinguish the facts of the cases relied by the assessee by holding that the ratio of decisions relied by the assessee are not applicable on the facts of the assessee's case. Further aggrieved, the assessee has filed present appeal before the Tribunal. 4. We have heard the submissions of the learned Authorised Representative (ld. AR) of the assessee and the learned Commissioner of Income Tax- Departmental Representative (ld. CIT-DR) for the revenue and have perused the orders of the lower authorities carefully. The ld. AR of the assessee submits that a very short dispute is involved in the present appeal. There is no dispute about the capital gain earned by the assessee. The lower authorities have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PCIT vs. Vaidya Panalal Manilal HUF [259 Taxman 0019], * CIT vs. Chandanben Maganlal [245 ITR 0182], * Smt. Subbalakshmi Kurada vs. ACIT [ITA No 2493/Bang/2019]. * Bhagwan Swroop Pathak vs. ITO [ITA No 2754/Del/2018]. * Shri Ramphal Hooda vs. ITO [ITA No 8478/Del/2019], 5. On the other hand, the ld. CIT-DR for the revenue supported the orders of the lower authorities. The ld. CIT-DR for the revenue submits that the assessee has earned huge capital gain, which is invested and claimed exempted. The plot of land on which residential house is constructed in the name of her husband. 6. We have considered the rival submissions of the parties and have gone through the orders of lower authorities carefully. We have also deliberated on va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT Vs. Chandanben Maganlal (supra) also held that where the assessee merely had purchased 15% undivided share in a residential house, she would not be disentitled to claim benefit of exemption under Section 54. 7. Hon'ble Delhi High Court in CIT Vs. Ravinder Kumar Arora (supra) while referring the decision of Hon'ble Apex Court in CIT Vs. Poddar Cement (P) Ltd. 226 ITR 625 held that Supreme Court in the said case, has accepted the theory of constructive ownership. It was held that Section 54F mandates that the house should be purchased by the assessee and it does not stipulate that house should be purchased in the name of assessee only. Where the house was purchased by assessee in his name and wife's name was also included additionally. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terms are used. The term "owned" as occurring in Section 32(1) must be assigned a wider meaning. Anyone in possession of a property in his own title exercising such dominion over the property as would enable others being excluded therefrom and having right to use and occupy the property and/or to enjoy its usufructs in his own right would be owner of the building though a formal deed of title may not have been executed and registered as contemplated under Transfer of property Act. Thus in view of aforesaid legal position, we find that there is no impediment in claiming deduction under Section 54F on investment of capital gain in the residential house, which is in the name of assessee's husband. Hence, we direct the Assessing Officer to allo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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