Assessee sold a land owned by him and purchased a residential property jointly with his wife. Assessing Officer denied exemption under section 54F holding that on date of transfer of land original asset, assessee was owner of two residential properties. Allowing the appeal the Tribunal held that merely on fact that said property was co-jointly owned by assessee and his wife, assessee could not be treated as absolute owner of said property and exemption cannot be denied. The Tribunal also held that Indiabull’s property was under construction and possession was handed over to assessee only on 28-12-2016, till such time income from said property was not chargeable under head income from house property. Accordingly the denial of exemption is not justified. (AY. 2013-14 )
Anant R Gawande. v. ACIT (2023) 198 ITD 58 (Mum) (Trib.)
S. 54F : Capital gains-Investment in a residential house-Two residential house-One unit co-owned by assessee and wife-Ownership of more than one house-Not absolute owner-Denial of exemption is not valid-Under construction house-Income cannot be assessed as income from house property-Till time of possession condition stipulated in clause (b) of proviso to section 54F(1) was not satisfied-Denial of exemption is not valid. [S. 22, 45]