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2020 (7) TMI 656 - ITAT DELHIDeduction u/s 54 denied - LTCG - Reopening of assessment - entitlement /claim for deduction or exemption denied under income tax statute on the sole ground that no return was filed - Whether this section does not require that the new residential property shall be purchased in the name of the assessee only? - HELD THAT:- It is pertinent to note that the assessee has demonstrated before the AO as well as the CIT(A) that the purchase of property in the name of the son was acquired by the assessee himself through the consideration received from the sale deed of earlier old property. The bank statement and the cheque issued to the builder as well as the confirmation received from the builder demonstrated that the payment was made by the assessee for purchase of new property within the stipulated time as prescribed u/s 54. Though, the assessee is not filed any return and at that stage never claimed Section 54, once the reopening u/s 148 has been issued, the assessee cannot be denied his entitlement /claim for deduction or exemption under income tax statute on the sole ground that no return was filed. The benefit of income tax act and its provisions related to exemption and deduction has to be taken into account while computing the income of the assessee and it is the proper procedure on the part of the Assessing Officer to follow all the aspect of taxation within the corners of Income Tax Act. As regards the name under whom the property is purchased, it can be seen that the son of the assessee is a direct relation and as per case of CIT(A) Vs. Kamal Vahal [2013 (1) TMI 401 - DELHI HIGH COURT]where assessee purchased new house in name of his wife, the claim under Section 54 is held valid. Thus, the exemption could not be denied if entire investment had come out of proceeds of old property. - Decided in favour of assessee.
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