Case Law Details
Zainul Abedin Ghaswala Vs CIT(A) NFAC (ITAT Mumbai)
ITAT Mumbai held that that the joint ownership of the property would not stand in the way of claiming exemption under Section 54F of the Income Tax Act.
Facts- In the assessment completed u/s 143(3) of the Act on 3 1.12.2018, the Ld. Assessing Officer disallowed the claim of the assessee for deduction u/s 54F of the Act against the capital gain on transfer of long term capital asset, on the ground that the assessee owned interest in was not more than one residential properties and therefore, he was not entitled for deduction u/s 54of the Act. The Ld. CIT(A) upheld the finding of the Assessing Officer. Aggrieved, the assessee is in appeal before the Tribunal
Conclusion- Hon’ble Madras High Court in the case of Dr. P.K. Vasanthi Rangarajan v. CIT held that the joint ownership of the property would not stand in the way of claiming exemption under Section 54F.
Held that decision of the Hon’ble Madras High Court is in favour of the assessee. Therefore, the claim of deduction u/s 54F of the Act need to allowed, as there is no material to show that assessee is exclusively owner of the other five residential properties/flats which are occupied by the other family members. The grounds of appeal of the assessee are accordingly allowed.
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