Tribunal grants partial appeal, allowing joint property deduction under section 54

The tribunal allowed the appeal in part, directing the AO to permit the deduction u/s 54 of the Act for investments made jointly by the assessee with his brother, contrary to the decision of the ld. CIT(A). The tribunal relied on precedents, including decisions of the Hon'ble Rajasthan High Court, Mumbai Tribunal, and Delhi High Court, supporting full exemption for jointly purchased properties. The delay in filing the appeal was condoned, and the appeal was heard on its merits for the Assessment Year 2014-15.

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Issues:
Delay in filing appeal, Disallowance of deduction u/s 54 of the Act for capital gains earned.

Analysis:
1. Delay in filing appeal: The appeal was filed by the assessee against the order of the ld. CIT(A)-2, Jaipur for the Assessment Year 2014-15. The assessee provided reasons for the delay in filing the appeal, which were found to be reasonable by the tribunal. Consequently, the delay was condoned, and the appeal was heard on merit.

2. Disallowance of deduction u/s 54 of the Act: The main grievance of the assessee related to the disallowance of deduction u/s 54 of the Act concerning capital gains earned. The assessee had sold a residential property jointly owned with his brother, and the AO allowed deduction only for one house purchased in the name of the assessee and his brother. The ld. CIT(A) upheld the AO's decision based on a judgment of the Hon'ble Rajasthan High Court. However, the assessee argued that the investment made jointly with his brother and in the name of his nephew should be allowed for deduction under section 54. The tribunal considered various precedents, including a decision of the Hon'ble Rajasthan High Court in a similar case, and held that the investments made jointly deserve to be allowed. The tribunal also cited a decision of the Mumbai Tribunal and the Delhi High Court supporting the allowance of full exemption even for properties purchased jointly.

3. Conclusion: The tribunal, following the decisions of the Hon'ble Jurisdictional High Court and Coordinate Bench, directed the AO to allow the claim of deduction u/s 54 of the Act for the investments made by the assessee in his own name along with his brother. The appeal of the assessee was allowed in part, and the order was pronounced in the open court on the specified date.

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