Sambhaji Maruti Katkar Vs ITO (ITAT Pune)
ITAT Pune held that exemption under section 54F of the Income Tax Act entirely allowed as entire amount re-invested by the assessee and name of the son taken only as a proforma purchaser.
Facts- The appellant objects to restricting the deduction to 50% of the Purchase cost of New Property, by the AO on the reasoning that he is not the absolute owner of the Property as the property was jointly registered in his name as well as in the name of his son Sh Rakesh Katkar. The appellant claims that the appellant is a senior citizen and due to his age he had put his son’s name so that he can succeed him in the property as a legal heir, without any hassle and at the same time claims that the admissible deduction to the extent of 100% must be allowed to him.
The appellant objects to restricting the qualifying amount of deduction From Rs. 5,72,80,000/- claimed by him to Rs. 5,05,00,000/-. The AO restricted the claim to Rs. 5,05,00,000/- to the extent of the acquisition cost of land and did not consider further amount, as the appellant failed to justify the claim towards construction of the house property.
