Case Law Details
The new residential property was acquired in the joint names of the assessee and his wife. The income tax authorities restricted the deduction under Section 54F to 50% on the footing that the deduction was not available on the portion of the investment which stands in the name of the assessee’s wife.
This view was disapproved by this Court. It noted that the entire purchase consideration was paid only by the assessee and not a single penny was contributed by the assessee’s wife. It also noted that a purposive construction is to be preferred as against a literal construction, more so when even applying the literal construction, there is nothing in the section to show that the house should be purchased in the name of the assessee only. As a matter of fact, Section 54F in terms does not require that the new residential property shall be purchased in the name of the assessee; it merely says that the assessee should have purchased/constructed “a residential house”.
HIGH COURT OF DELHI
Judgment delivered on: 11.01.2013
+ ITA 4/2013
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Dear Admin,
After reading the above case.
I referred Section 54F which says that “Cap gain will be exempt only if Asset transferred is any long-term capital asset BUT OTHER THAN RESIDENTIAL HOUSE PROPERTY”…
Then how come the assesse claimed exemption under section 54F on sale of RESEDENTIAL property acquired from his father in Delhi ??