Tribunal directs AO to verify legal heirs' share in property sale for capital gains assessment The Tribunal allowed the appeals for statistical purposes, directing the Ld. AO to verify and compute the share received by all legal heirs for capital ...
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Tribunal directs AO to verify legal heirs' share in property sale for capital gains assessment
The Tribunal allowed the appeals for statistical purposes, directing the Ld. AO to verify and compute the share received by all legal heirs for capital gains assessment in a property sale. Additionally, the Tribunal remanded the issue of deduction under Section 54F for reevaluation, clarifying that investments made jointly with siblings and in agricultural land could not qualify for exemption. The assessee was instructed to provide evidence supporting the investment in the new residential property.
Issues: 1. Share in sale consideration 2. Deduction under section 54F
Share in Sale Consideration: The appeals were filed against orders passed by the Ld. CIT (A) for the assessment year 2015-16. The issue revolved around the share in the sale consideration of a property sold jointly by the assessee, her mother, sisters, and sons of brothers. The assessee claimed a 1/6th share, but the Ld. AO observed a 1/4th share based on verification. The Ld. CIT (A) upheld the 1/4th share, considering the ownership of the property and the sale deed. However, discrepancies arose regarding the share received by other legal heirs. The Tribunal directed the Ld. AO to verify and compute the share received by all legal heirs for capital gains assessment.
Deduction under Section 54F: Regarding the claim under section 54F for investment in a new residential property, the Ld. AO rejected the claim as the property was purchased in the name of the assessee's son and included investment in agricultural land. The Ld. CIT (A) also denied the exemption, stating that the investment was not eligible. The Tribunal remanded the issue to the Ld. AO for reevaluation in line with the computed share in the sale consideration. It clarified that the investment made jointly with the sister and in agricultural land could not be considered for exemption under section 54F. The assessee was directed to provide evidence to substantiate the investment in the residential property.
The Tribunal allowed the appeals for statistical purposes, remanding both issues to the Ld. AO for further assessment in accordance with the directions provided. The judgment was pronounced on 21st September 2020.
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