Case Law Details
Kaushal Kishore Maheshwari Vs ACIT (ITAT Delhi)
What is important is that for deduction under section 54F of the Act that investment in the new property has to be made by the assessee. But in the present case before us, though the property has been purchased in the name of the wife of the assessee but the investment in purchase of the property has been made out of the loan sanctioned to the wife of the assessee and the assessee has joined name in the loan sanction letter. In the circumstances, the issue before us is whether the investment in the new property can be treated as investment made by the assessee. We find that the wife of the assessee is an independent taxpayer having her own sources of income. We also find that property has been purchased exclusively in the name of the wife of the assessee and the assessee is not co-owner of the property. The bank has sanctioned loan for purchase of the property, which is purchased in the name of wife of the assessee. The assessee has claimed that the loan has been sanctioned in the joint name of the wife of the assessee and the assessee. In our opinion, in the circumstances, it cannot be said that the assessee has made investment for purchase of the property due to the reason that loan has been primarily sanctioned to the wife of the assessee, who is having title over the property and the assessee has been joined in the loan for the purpose of repayment of the loan. The repayment of loan by the assessee is a transaction different from the transaction of investment in the property. Moreover, the assessee has not submitted any evidence of repayment of loan by him. Thus, we conclude that investment in the new property worth Rs. 1,30,31,250 has not been made by the assessee. In view of the above facts and circumstances, we are of the opinion that finding of the learned Commissioner (Appeals) with regard to the investment of Rs. 1,30,31,250 in new property is well reasoned and we do not find any error in the said finding and accordingly uphold dis allowance of deduction under section 54F of the Act in respect of the said investment of Rs. 1,30,31,250.
Full Text of the ITAT Order is as follows:-
This appeal by the assessee is directed against order dated 27-2-2014 of the Commissioner (Appeals)-XXVIII, New Delhi [in short “the CIT(A)”] for assessment year 2009-10, raising following grounds :–
“1. That on the facts and circumstances of the case and in law, the learned Commissioner (Appeals), XXVIII, New Delhi [hereinafter referred to as ‘the learned CIT(A)’] has grossly erred in denying the exemption to the Appellant under section 54F of the Income Tax Act, 1961.
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