TaxTMI 
TaxTMI 
2018 (11) TMI 1123
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....ary to the facts of the case and provisions of law . 2 The Hon'ble Commissioner of Income Tax is not justified in sustaining the disallowance of exemption U/s.54F of the Income Tax Act. 3. The Hon'ble Commissioner of Income Tax is not justified in holding that the appellant is not entitled to the deduction as the house constructed stands in the name of the appellant's wife. 4. The Hon'ble Commissioner of Income Tax should have appreciated that the appellant did show the investment as house in his Balance Sheet and that his intention is to acquire a house for living, though in the name of his wife. 5. The Hon'ble Commissioner of Income Tax should have appreciated that the object of the provision to Section 54 and ....
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....commercial building and that he has not produced any supporting vouchers for construction expenditure. Further, he also observed that the assessee is already an owner of a property and is receiving income from house property, hence 54F is not allowable. He also considered the fact that the house is in the name of assessee's wife and therefore, he disallowed the claim of deduction u/s 54F on this ground also. Aggrieved, the assessee preferred an appeal before the CIT (A) along with necessary evidence that the house constructed at Chennai was a residential house. The CIT (A) accepted the assessee's contention with regard to the house being a residential house, but disallowed the claim of the assessee on the ground that the property is in the ....
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.... placed reliance upon the decision of the Hon'ble Bombay High Court in the case of Prakash vs. ITO dated 12.09.2018 reported in 312 ITR 40 (Bom.) wherein the investments made in the name of the son was not allowed as exemption u/s 54F and it has been particularly held that for qualifying the exemption, it is necessary to have investments made in the residential house in the name of the assessee only. 5. Having regard to the rival contentions and the material on record, we find that the only issue is whether exemption u/s 54F can be granted to the assessee when the residential property is purchased/constructed in the name of his spouse? In the case before us, both the assessee and his wife are independent income tax assessees. In the de....
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....decision of Hon'ble Delhi High Court in the case of Raj Kumar Arora to hold that where the assessee had paid the entire sale consideration and merely has included his wife as the owner of the property, it would not make any difference and in fact such a contract has to be encouraged which helps in empowerment of women and that the government itself has floated various schemes permitting joint ownership with wife. The Hon'ble High Court further proceeded to consider the assessee therein to be a constructive owner of the property. The Hon'ble High Court also considered the decision of the Hon'ble Andhra Pradesh High Court in the case of Late Gulam Ali Khan vs. CIT reported in 165 ITR 228 (A.P), wherein it was held that the obj....