Case Law Details
Shri Vivek Jain Vs. DCIT (ITAT Jaipur)
Facts of the Case
During the course of assessment proceedings, the assessee was asked to show cause as to why the claimed u/s 54F of the Act, 1961 may not be disallowed, as the property was not owned in the name of assessee. In response, the assessee submitted that the consideration for such property was paid out of repayment of advance belonging to the assessee received from Narvik Nirman & Financiars Pvt. Ltd. and it was further submitted that the new residential house need not be purchased by the assessee in his own name nor is it necessary that it should be purchased exclusively in his name.
It was submitted that the assessee has not purchased the new house in the name of a stranger and entire investment has come out of the source of the assessee and there was no contribution from the assessee’s wife. The submission of the assessee was considered but not found acceptable to the Assessing Officer. As per Assessing Officer, the property which was sold was belonging to the assessee whereas the reinvestment in property (residential house) has been made in the name of Smt. Nikita Jain, wife of the assessee.
It was further held by the AO that Smt. Nikita Jain, wife of the assessee, is having her PAN and filing her return of income which is also assessed to tax, therefore, as per income tax provisions, husband and wife both could not be considered as single entity and the benefit of investment made by an individual assessee cannot be given to another individual assessee.
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