M/s. Chawala Sweets Vs ACIT (ITAT Jaipur)
Merely because the new house is constructed on a plot of land owned by the mother of the assessee will not disentitle the assesee for claim of deduction u/s 54F of the Income Tax Act.
The claim of deduction u/s 54F of the Act was denied by the authorities below on primarily on two grounds that the work carried out by the assessee is not a reconstruction of the house and secondly on the ground that the property on which the assessee claimed to have constructed house is owned by the mother of the assessee and not by the assessee. As regards the property is owned by the mother of the assessee we are of the view that if the assessee has constructed a new on the plot of land which is owned by the mother of the assessee then, the investment made by the assessee in construction of new house is eligible for deduction u/s 54F of the Act. A residential house is not a personal effects but it is meant for residential purpose of the family. Therefore, the investment made by the assessee for purchase or construction of house even in the name of the mother is eligible for deduction u/s 54F.
