The assessee, an HUF, purchased a property via a General Power of Attorney (GPA) held by its co-parcener (the assessee’s son), from three unrelated persons. The Assessing Officer (AO) denied the claim under section 54, arguing that the assessee already had more than one residential property. The ITAT observed that, when the sale consideration flowed directly from the HUF to the original property owners, possession transferred from the original owners to the HUF, and The son, as GPA holder, merely facilitated the transaction without acquiring personal rights, it was a case of valid transaction and the HUF could not be deprived of the S. 54 benefit. (AY. 2006-07)