2020 (7) TMI 656

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....d beneficial construction and erred in interpreting the provisions of section 54, this section does not require that the new residential property shall be purchased in the name of the assessee only. It merely says that the assessee mould have purchased/constructed a residential house within the prescribed limit specified in this section. 2. That the Ld. CIT(A)-I, Gurgaon erred in concluding that for claiming relief under section 54 the house property cannot be purchased in the name of youngest son out of love and affection, ignoring the fact that assessee in the present case has purchased the new house in the name of youngest son as under common law father and son who is a student are considered to be one and same even though they ....

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....That the assessee craves the right to amend, add, delete, replace , all or any of the grounds of appeal either during the course of hearing or at any time before hearing of this appeal. PRAYER/RELIEF CLAIMED: 1. To allow relief under section 54 of Rs. 23,27,402/- in the hands of the assessee father" on account of purchase of new house property in the name of "son" who is a student. 2. Any other relief as deemed fit in circumstances of the case." 3. The assessee is an individual and transferred a residential house property through transfer deed of lease hold rights signed between the assessee (transferor) and the purchaser Shri Dinesh Prakash Sharma (transferee) on 24th September, 2009 for an agreed consideratio....

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....ection 54 benefit for the amount equal to the amounts of investment made in the name of assessee's son towards purchase of new under construction house property within the period of 3 years from the date of transfer of the old residential house property out of long term capital gain earned from the transfer of old residential house property. The Ld. AR submitted that the said claim cannot be denied by the Assessing Officer even if return of income was filed belatedly in response to notice issued u/s 148. The Ld. AR submitted that Section 54 is a beneficial provision and is applicable to an assessee individual when the long term capital gain earned on transfer old residential house property and is invested in the construction purchase of new....

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....f the Act. The property is not in the name of the assessee but was purchased in the name of son. Section 54 does not permit the same. Thus, the Ld. DR relied upon the Assessment Order and the order of the CIT(A). 7. We have heard both the parties and perused the material available on record. It is pertinent to note that the assessee has demonstrated before the Assessing Officer as well as the CIT(A) that the purchase of property in the name of the son was acquired by the assessee himself through the consideration received from the sale deed of earlier old property. The bank statement and the cheque issued to the builder as well as the confirmation received from the builder demonstrated that the payment was made by the assessee for purcha....