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2020 (8) TMI 70 - ITAT HYDERABADDeduction u/s 54F disallowed - sale proceeds received by the assessee was utilised for purchase of the new residential property in the name of his son AND new asset is also purchased within the due date of filing of the return by the assessee - bank loan obtained by the assessee’s son from the HDFC Bank does not appear to be the source for the purchase of the new residential house by the assessee’s son - HELD THAT:- Violations made by the assessee’s son with respect to the terms of loan agreement entered with HDFC Bank towards the purchase of the residential house is of no relevance as far as the Income Tax Act is concerned for granting deduction U/s. 54 of the Act. Penal action against such violation if any has to be initiated by the Bank, as per the Banking Regulations Act or as per the terms of the agreement between them and not by the Revenue. Case decided SHRI KAMAL WAHAL [2013 (1) TMI 401 - DELHI HIGH COURT] has also held that “wherein the assessee purchases new house in the name of his wife and not in the name of any stranger who was unconnected with him, exemption cannot be denied if entire investment had come out of proceeds of old property”. From the above it is clear that the assessee has not violated any of the provisions mentioned in section 54F of the Act in order to be denied for the benefit of deduction. Therefore,set aside the order of the Ld CIT (A) on the issue and direct the Ld. AO to grant the benefit of deduction U/s.54F of the Act to the assessee
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