2018 (8) TMI 1194

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....ation, Baroda with the following grounds:- 1. The order of Hon'ble Commissioner (Appeals)-13, Ahmedabad is against law and facts. 2. The order of the learned AO has been upheld by the Hon'ble CIT(A) without considering the facts of the case that the deduction from the capital gain u/s.54 of the Act is available to the person who has made investment in the property and not to the person whose name has been added in the sale deed to safe guard the interest of the non-resident appellant. The contention of the non-resident appellant is also corroborated by Transfer of Property Act 1882. 2. The brief facts leading to the case is this that assessee is a non-resident Indian received a property being a residential house by virt....

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....during the assessment proceeding. He further submitted that the property was purchased jointly with the father of assessee in order to retain ownership or smooth running of ownership as an abundant caution. The entire payment was made by the assessee out of the capital gain accrued from the sale consideration of the earlier property. He further added that the provision of section 54F of the I.T.Act mandates that a house should be purchased by the assessee and it does not stipulates that it should be purchased in the name of the assessee. Therefore, inclusion of the name of the father cannot stand in the way of the deduction legitimately accruing to the assessee. He further added that similar issue has already been decided by the Hon'ble Jur....

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....hased by the assessee and it does not stipulate that the house should be purchased in the name of the assessee only. Here is a case where the house was purchased by the assessee and that too in his name and wife's name was also included additionally. Such inclusion of the name of the wife for the abovestated peculiar factual reason should not stand in the way of the deduction legitimately accruing to the assessee. Objective of s. 54F and the like provision such as s. 54 is to provide impetus to the house construction and so long as the purpose of house construction is achieved, such hyper technicality should not impede the way of deduction which the legislature has allowed. Purposive construction is to be preferred as against the l....