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TMI Blog2017 (5) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... these facts and circumstances, there is no justification for giving 50% benefit of investment in the new house. The issue is also covered by the decision of hon’ble Delhi High Court in the case of CIT v Ravinder Kumar Arora (2011 (9) TMI 343 - DELHI HIGH COURT) wherein held that the assessee was entitled to full exemption u/s. 54F when the full amount was invested by the assessee even though the property was purchased in the joint names of the assessee and his wife. Thus no merit in the action of AO for restricting exemption u/s.54 to the extent of 50% of the value of the new house. The CIT(A) was also not justified in directing the AO to tax entire capital gain on sale of old property in the hands of assessee when 50% of the old house ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . While making assessment, AO observed that the new property purchased was in the name of two persons namely the assessee and his brother Shri Kunal Velji Faira and therefore he concluded that the exemption claimed by the assessee will be restricted to 50% inspite of the fact that it was made clear to him in writing that the name of the assessee's brother was included for the sake of convenience and the entire amount was paid by the assessee. 5. In an appeal filed by the assessee before the CIT(A), CIT(A) directed the AO to tax the entire capital gains on sale of property in the hands of assessee as against 50% assessed by the AO. Assessee is in further appeal before us. 6. I have considered rival contentions and carefully gone th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hands by disregarding the fact that 50% of the sale in old house was owned by his wife. I found that wife has already offered her share of capital gains in her return of income filed with the Department. Thus, there is no justification in the order of CIT(A) for taxing the entire capital gains in the hands of the assessee. 8. Now coming to the allegation of the AO that since assessee has incorporated name of his brother, he is entitled to only 50% of the investment so made in the new house. There is no justification in the AO s action, in so far entire investment was made by the assessee and only for the safety reason he has included the name of his brother. I found that in the assessment order itself at page 2, the AO has observed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut along with the name of his wife also and that it was the assessee who paid stamp duty and corporation tax at the time of the registration of the sale deed of the house so purchased and has also paid commission and legal expenses in connection with the purchase of the house. The Tribunal further records that whole of the purchase consideration has been paid by the assessee and not even a single penny has been contributed by the wife in the purchase of the house. The Tribunal also noted the argument that the property was purchased by the assessee in the joint names with his wife for shagun purpose and because of the fact that the assessee was physically handicapped. The Tribunal further concludes that as a matter of fact, the assessee wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 54 is to provide impetus to the house construction and so long as the purpose of house construction is achieved, such hyper technicality should not impede the way of deduction which the Legislature has allowed. Purposive construction is to be preferred as against the literal construction, more so when even literal construction also does not say that the house should be purchased in the name of the assessee only. Section 54F of the Act is the beneficial provision which should be interpreted liberally in favour of the exemption/deduction to the taxpayer and deduction should not be denied on hyper technical ground. The Andhra Pradesh High Court in the case of Late Mir Gulam Ali Khan v. CIT [1987J 165 ITR 228 (AP) has held that the object of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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