Assessee cannot claim exemption U/s. 54F and 54EC for investment made by spouse

Shri Raghuram P Nambyar Vs Asst. CIT (ITAT Bangalore)

Assessee cannot claim exemption U/s. 54F and 54EC for investment made by spouse; Capital Gain cannot be assessed in the hand of spouse if appellant only is legal owner as per sale deed

In this ground, the assessee has raised an alternate plea to contend that if the entire LTCG on sale of the aforesaid property is assessed in the hands of the assessee, Shri Raghuram P Nambyar, then the exemption under Section 54 and 54 EC of the Act as claimed by the assessee’s wife ought to be allowed in the hands of the assessee. This ground was never raised before the learned CIT (Appeals). Except for raising this ground, before us, the assessee was not able to substantiate or establish as per the Act as to how his claim that the exemptions claimed by his wife, Smt. Veena Nambyar, under Section 54F and 54 EC of the Act be allowed in his hands when he himself never made the said investments. Finding no merit in this ground No.6 raised by the assessee, we dismiss the same.

FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-

These are appeals filed by two assessees who are wife and husband. One appeal in IT(IT)A No.12/Bang/2014 is by Smt.Veena Nambyar directed against the order passed by the CIT (Appeals) -4, Bangalore dt.20.2.2014, in respect of the order of assessment passed. 143(3) of the Income Tax Act, 1961 (in short ‘the Act’) dt.27.12.2011. The second appeal in ITA No.2007/Bang/2016 by Shri Raghuram P Nambyar is directed against the order passed by CIT (Appeals)-12, Bangalore dt.22.9.2016 in respect of the order of assessment passed under Section 143(3) of the Act dt.25.3.2015. The relevant assessment year is 2009-10. Since connected issues are involved, these appeals were heard together and are being disposed off by way of this common order for the sake of convenience.

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