The assessee sold certain immovable property jointly held with two other members and received his share. He claimed exemption under section 54 of the Act having purchased a new flat. The Assessing Officer denied the exemption because the new flat was purchased by the assessee in the name of the assessee’s wife. The Commissioner (Appeals) affirmed this. The Tribunal followed the view taken by the jurisdictional High Court. Prakash v ITO (2009) 312 ITR 40 (Bom.)(HC) Not followed, CIT v. Shri Kamal Wahal (2013) 351 ITR 4 (Delhi) (HC), CIT v. Gurnam Singh (2010) 327 ITR 278 (P&H(HC). Denial of exemption was affirmed. (AY. 2015-16)
Jayawant Gajanan Sutar v. ITO (2022) 96 ITR 3 (SN) (Pune) (Trib)
S. 54 : Capital gains-Profit on sale of property used for residence-Purchase of residential unit in name of assessee’s wife-Not entitled to exemption. [S. 45]