TaxTMI 
TaxTMI 
2020 (5) TMI 261
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....d u/s 54 of the Act to 50% of the claim made on the reasoning that the new residential house has been purchased in the name of assessee and his son. 2. We heard the parties and perused the record. During the year under consideration, the assessee sold a residential house property for a sum of Rs. 12.75 crores on 06-11-2015. She purchased another residential house property on 17-02-2016 for Rs. 11.02 crores. The new house property was purchased in the joint name of the assessee and her son Shri Kurada Sagar Chakravarthy. The assessee claimed deduction of Rs. 8.47 crores u/s 54 of the Act towards the cost of new residential house property against the long term capital gain arising on sale of original house property. Since the new residential....
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....he transferor i.e., the Assessee. To the extent the capital gain is invested in the joint name of the Assessee's wife and son, the deduction cannot be allowed. On such reasoning the revenue authorities took the view that even assuming the deduction u/s.54F of the Act has to be allowed to the Assessee, such deduction should be restricted to 1/3rd of the cost of the new asset. The stand of the Assessee on the other hand is that Sec.54F mandates that the new asset should be purchased by the Assessee and it does not stipulate that the house should be purchased in the name of the Assessee only. 24. The view of the revenue finds support in the decision of the Hon'ble Bombay High Court in the case of Prakash Vs. ITO 312 ITR 40 (Bom) wherein it w....
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....id decisions, we hold that the Assessee should be entitled to the benefit of deduction u/s.54F of the Act, to the whole extent of investment in purchase of new asset, even though the property has been purchased in the joint names of Assessee, his wife and son. We hold accordingly." 4. Before us, the Ld A.R furnished a statement showing the manner of payment of consideration for purchase of new residential house. He submitted that the entire sale consideration on sale of original house was received in the bank account of the assessee on 28-09-2015, 01-10-2015 and 06.11.2015. The assessee initially made fixed deposits out of those proceeds to the tune of Rs. 11.50 crores. Subsequently, those fixed deposits were encashed on 08-02-2016 and the....