Section 54F Exemption Allowed: Oral Gift Satisfying Mohammedan Law Validates Claim

Smt. Sajida Begum Vs ITO (ITAT Bangalore) Income Tax Appellate Tribunal (ITAT) Bangalore Bench recently delivered a judgment in the case of Smt. Sajida Begum Vs. ITO, allowing an appeal by the assessee and overturning a decision by the Commissioner of Income-tax (Appeals) [CIT(A)]. The core issue in contention was the denial of a deduction claimed under Section 54F of the Income Tax Act, 1961, for Assessment Year 2009-10. The case hinged on the validity of oral gifts (Hiba) made under Mohammedan Law and the assessee’s eligibility for capital gains exemption. Background of the Case Smt. S...