Vidjayane Durairaj –Vidjayane Velradjou Vs ITO (ITAT Chennai)
In the case abovementioned ITAT have held that there is no need to purchase residential property in own name by any assesseee for the purpose of claim of capital gain u/s 54F.
Assessee didnot file return for AY 2012-13. AO received information that assessee had deposited cash into his account to the tune of Rs.19,75,000/-. Case was re-opened and in response to notice u/s 148, assessee filed his return at Rs.2,92,100/-. AO observed that assessee has sold an immovable property for consideration of Rs.50,40,000/- which was received in cash and part of which was deposited in his account and his wife’s account. He further noted that assessee has claimed a deduction of Rs.44,27,994/- being the capital gain investment into residential property purchased by his wife. In response to SCN, assessee submitted that a residential house was purchased by him in the name of his wife, which was only residential property. However, AO noted that assessee’s wife is also assessed to tax and independently files her return. AO held that assesssee has admitted capital gains to the tune of Rs.47,00,589/- out of which he claimed Rs. 44,27,994/- as deduction u/s 54F and balance amount of Rs.2,72,595/- was offered to tax. According to the AO, the amount of deduction claimed u/s.54F was not allowable since the residential property in question was purchased in the name of assessee’s wife who is also assessed to tax separately. AO disallowed the deduction claimed u/s.54F to the tune of Rs.44,27,994/-. CIT (A) dismissed the appeal preferred by the assessee.
