Case Law Details
Dharamvir Singh Vs ITO (ITAT Jaipur)
Bench of this Tribunal in the case of Mahadev Balai Vs ITO in ITA No. 333/JP/2016 decided on 26/12/2016 and held that there is no impediment in the assessee’s claim for relief U/s 54F of the Act as the assessee had purchased the property in the name of his wife.
Object of granting exemption U/s 54F of the Act, is that the house should have been purchased for residential purposes, must be given exemption so far as capital gains are concerned that the work “assessee” must be given a wide and liberal interpretation so as to include his legal heirs also and there is no warrant for giving too strict interpretation on the word “assessee” as that would frustrate the object of granting the exemption. In the present case, the assessee had purchased house in the name of his wife, therefore, the Coordinate Bench has held that the assessee is not disentitled for exemption U/s 54F.
We also hold that the assessee is eligible for deduction U/s 54F of the Act in respect of residential house property purchased in the name of his wife. Considering the totality of facts and circumstances of the case, we direct to delete the addition so made and confirmed qua this issue.
FULL TEXT OF THE ORDER OF ITAT JAIPUR
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