Praveen Tyagi Vs ITO (ITAT Delhi)
ITAT Delhi held that property purchased in the name of mother out of sale consideration of property inherited by mother and son is allowed as deduction u/s. 54F to son since entire sale consideration of inherited property and deduction towards newly purchased property was reflected son’s return.
Facts- CIT (A) observed that assessee has claimed deduction u/s 54F of the Income Tax Act in two proportion, and accordingly enhanced the income of the assessee by rejecting the claim u/s 54F on the second property and allowed the claim u/s 54F of Rs.4,38,99,196/- and determined the actual deduction u/s 54F. Being aggrieved, the present appeal is filed.
Conclusion- Held that the land belongs to the father of the assessee and as per the Hindu Succession Act, the property belongs to assessee and his mother. Merely because assessee has sold the property as a single owner, the fact will not change. This is a peculiar case wherein assessee has declared as a single owner and sold the property, however purchased two properties and registered one property in the name of his mother on the basis of inheritance. This fact cannot be denied. Considering the peculiar facts on record, we are inclined to allow the claim of the assessee based on the facts brought on record. The Assessing Officer has not disputed the fact nor brought any material to dispute the above facts on record. Therefore, we are inclined to allow the claim of the assessee in Ground No.3 and additional grounds.
