TaxTMI 
TaxTMI 
2024 (10) TMI 1558
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....te of order14.03.2024. The impugned order was emanated from the order of the Learned Income Tax Officer, Ward-22(3)(5), Mumbai, order was passed under section 143(3) read with section 147 of the Act, date of order 06/11/2018. 2. The assessee has taken the following grounds: - "1. The learned Commissioner of Income Tax {Appeals} erred in facts and in law in disallowing appellant's claim of exemption u/s 54. 2. The learned Commissioner of Income Tax {Appeals} erred in not applying the provisions of section 64(1) of the I.T. Act in their correct import and amplitude. 3. The learned Commissioner of Income Tax {Appeals} erred in not "appreciating that the exemption under section 54 was clearly allowable on two count....
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....e purchased in the name of assessee. 9. The appellant craves leave to add, alter or amend any of the grounds of the appeal, at any time before or at the time of hearing." 3. The brief facts of the case are that the assessee, by profession, is a salaried person and is working in merchant navy. The assessee purchased a flat in the financial year 1991-92 on 14/06/1991 by investing amount to Rs. 5,11,750/- in the name of his wife, Mrs. Pooja Mehendale. The assessee sold the property on dated 02/05/2013 and purchased two new flats bearing address, Flat No.501 & 502, Sandhya CHS Ltd, Ramnagar Colony, Bavdhan, Pune, in the name of his wife. During filing of the return, the assessee declared the capital gain by transfer of property in h....
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.... of the Act. The Ld.AR further argued on the prevailing provisions of section 54F of the Act with the amendment of "one flat" is inserted from 01/04/2015 which is applicable for A.Y. 2015-2016. Before the amendment, purchasing more than one flat was not contravening the provisions of section 54F of the Act. The assessee invested Rs. 1,25,00,000/- which is fully in the name of his wife, so the assessee is eligible for deduction. The Ld.AR respectfully relied on the order of the coordinate Bench of ITAT-Delhi in the case of Simran Bagga vs ACIT (2024) 158 taxmann.com 265 (Del Trib), where at paragraph 13 on page 4 of the order of the co-ordinate bench has held as under: - "13. Further, we find that the Hon'ble Jurisdictional D....
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....s 54(1) and 54F of the Income-tax Act discloses that, a non-residential building can be sold, the capital gain of which can be invested in a residential building to seek exemption of capital gain tax. However, the proviso to section 54 of the Income-tax Act, lays down that if the assessee has already one residential building, he is not entitled to exemption of capital gain tax, when he invests the capital gain in purchase of additional residential building. Hindu undivided family's residential house is sold, the capital gain should be invested for the purchase of only one residential house in an incorrect proposition. After all, the Hindu undivided family property is held by the members as joint tenants. The members keeping in view....
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....his hands. Even otherwise, usually deduction towards capital gains is only eligible for the owner of the property who, after sale of the property shall reinvest the sale proceeds in his own name. However, the assessee relies on judicial pronouncements in the case of CIT Vs. V Natarajan (203CTR0037), DIT (International Taxation) Vs. Jennifer Bhide (Karnataka High Court). I have gone through the above case laws. The facts and circumstances of the above case laws are distinguishable with the facts of the present case. The provisions of section 54 in clear terms states that the reinvestments should be made by the assessee. For the sake of ready reference, the provisions of section 54 are reproduced hereby as under- 54 [1] "Subject to t....
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....assessee himself to purchase the flat in his wife's name. So, the income is duly declared in his own return of income. The section 54 must read with section 64 of the Act. The disputed issue whether the assessee can declare the income of capital gain of his wife in his return u/s 64 of the Act. For ready reference here quick look on the relevant part of the section 64 of the Act. "Income of individual to include income of spouse, minor child, etc. 64. [(1)] In computing the total income of any individual, there shall be included all such income as arises directly or indirectly- (iv) subject to the provisions of clause (i) of section 27[* * *] to the spouse of such individual from assets transferred directly or ind....