Exemption u/s 54F cannot be denied merely for Property buy in spouse title

Exemption u/s 54F cannot be denied merely for Property buy in spouse title

Case Law Details

Shri Vivek Jain Vs. DCIT (ITAT Jaipur)

The assessee was asked to show cause as to why the claimed u/s 54F of the Act, 1961 may not be disallowed, as the property was not owned in the name of assessee during the course of assessment proceedings. As a result, the assessee presented that the consideration for such home had been paid of payment of advance of the assessee received from Narvik Nirman & Financiars Pvt. Ltd. plus it ended up being further submitted that this new residential household need not be bought by the assessee in their very very very own title neither is it necessary so it should always be bought solely in the title.

It absolutely was submitted that the assessee have not bought the house that is new the title of the complete complete stranger and whole investment has arrived out from the supply of the assessee and there is no share through the assessee’s spouse. The distribution associated with assessee ended up being considered although not discovered acceptable into the Assessing Officer. According to Assessing Officer, the home that was offered had been from the assessee whereas the reinvestment in property (domestic household) happens to be built in the title of Smt. Nikita Jain, spouse associated with assessee.

It had been further held by the AO that Smt. Nikita Jain, spouse regarding the assessee, is having her PAN and filing her return of earnings that will be additionally examined to taxation, consequently, according to tax provisions, spouse and spouse both could never be regarded as solitary entity as well as the advantageous asset of investment produced by a person assessee may not be directed at another specific assessee.

The AO reference that is further drawn the conditions of Section 54F https://sweetbrides.net/russian-brides/ single russian women associated with the Act and held that to claim deduction, the investment in brand brand new asset must be within the name of assessee himself. (more…)

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