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TMI Blog2020 (7) TMI 656X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be purchased in the name of youngest son out of love and affection, ignoring the fact that assessee in the present case has purchased the new house in the name of youngest son as under common law father and son who is a student are considered to be one and same even though they are independent and distinct under the I.T Act-1961. 3. That the Ld. CIT(A)-I, Gurgaon erred in not applying the theory of Constructive Ownership pronounced by Hon'ble Supreme Court to hold that assessee father is the real owner of the new house property even if the new property was registered in the name of youngest son who is a student out of love and affection. 4. That the Ld. CIT(A)-I, Gurgaon has further grossly erred in relying on the judgments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is an individual and transferred a residential house property through transfer deed of lease hold rights signed between the assessee (transferor) and the purchaser Shri Dinesh Prakash Sharma (transferee) on 24th September, 2009 for an agreed consideration of ₹ 50,00,000/-. The assessee had not filed any return of income for Assessment Year 2010-11 within the due dates u/s 139(1) as well as u/s 139(4) of the Income Tax Act. The case was reopened u/s 147 and Assessing Officer passed order dated 15/12/2017 u/s 147/143(3) and assessed income of ₹ 35,34,360/- which includes long term capital gain of ₹ 33,74,013/- earned from the transfer of old house property. During the assessment proceedings, the assessee claimed relief u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... response to notice issued u/s 148. The Ld. AR submitted that Section 54 is a beneficial provision and is applicable to an assessee individual when the long term capital gain earned on transfer old residential house property and is invested in the construction purchase of new residential house property within the time period specified u/s 54. The Ld. AR further submitted that once an assessee falls within the ambit of beneficial provision then the said provision should be liberally interpretated. Section 54 does not mandate that the new house property should be purchased/constructed in the name of assessee alone. The Ld. AR submitted that investment in new residential house property in the name of assessee s son who is a family member cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 compu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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