S. 54F : Capital gains-Investment in a residential house-Joint property purchase with wife-Joint transfer for consideration-The wife’s inclusion in the property title was deemed nominal and for convenience-Denial of exemption is not valid. [S. 45, Transfer of Property Act, 1882, S. 45]
The assessee claimed deduction under section 54F in respect of purchase of house property. The AO disallowed the full deduction under Section 54F, restricting it to 50%, asserting joint ownership of the purchased property. On appeal the CIT(A), reversed the AO’s findings, citing sufficient documentation and approvals and relying on CIT v. Ravindra Kumar Arora [2011] 203 Taxman 289 / [2012] 342 ITR 38/ 252 CTR 392 (Delhi)(HC). On appeal by the Revenue, the Tribunal held that entire purchase consideration for the property was paid by the assessee. The wife’s inclusion in the property title was deemed nominal and for convenience. Order of CIT(A) is affirmed Relied on CIT v. Ravinder Kumar Arora (2012) 342 ITR 38 /203 Taxman 289 (Delhi)(HC) CIT v. Kamal Wahal (2013) 30 Taxman.com 34 / 214 Taxman 287 (2013) 351 ITR 4 (Delhi)(HC), Shri Bhatkal Ramanrao Prakash v. ITO (2019) 175 ITD 144 (Bang)(Trib), Jitendra V. Faria v. ITO (2017) 81 Taxman.com 16 /164 ITD 443 (Mum)(Trib) (ITA No. 1085/Mum/2024 dt. 13-1-2025) (AY. 2021-22)
ACIT v. Jay Bharat Mehta (Mum.)(Trib.) www.itatonline.org.
[Hon’ble Shri Rahul Chaudhary, JM and Hon’ble Shri Girish Agrawal, AM]