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TMI Blog2021 (2) TMI 902X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act on the amount invested in purchase of residential house in his daughter s name. This ground of appeal of assessee is allowed. Disallowance of selling expenses - HELD THAT:- The assessee has not furnished the full details of selling expenses before the lower authorities. Hence in the interest of justice, we remit this issue to the file of Assessing Officer for fresh adjudication and with a direction to the assessee to furnish the details before the Assessing Officer. - ITA No.405/Bang/2020 - - - Dated:- 22-2-2021 - Shri Chandra Poojari, Accountant Member And Shri George George K, Judicial Member For the Assessee : Shri C. Ramesh, C.A. For the Revenue : Shri Kannan Narayanan, JCIT (D.R.) ORDER PER SHRI CHANDRA POOJARI, AM : This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), Bangalore dt.24.02.2020 for the Assessment Year . 2. The assessee has raised the following grounds : 1. The CIT(A) was not correct in not allowing the deduction claimed u/s 54F having invested in Residential house property to the extent of ₹ 2,40,40,716/- in the name of assessee s widow daughter. 2. The CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee has sold the property situated at 70, Kannamangala Vilalge, Kasaba Hobli, Devanahalli Taluk, Bangalore along with legal heirs for a consideration of ₹ 2,60,46,754 vide Sale Deed dated 15.10.2015. Further it was submitted that all the legal heirs including his widowed daughter, in whose name the investment is made for claiming the exemption u/s. 54F of the Income Tax Act, 1961 ('the Act'), were party to sale deed. According to ld. AR the said property which was sold was acquired by the assessee by way of Partition Deed dated 23.11.1971 and the following legal heirs are having the share in the property. (i) Chandramma, Wife 55 Years. (ii) Ravi J, Son, 37 Years. (iii) Shailaja J and her children, Daughter 35 Years The assessee and other family members are the sole owners of the property which is sold and the Capital Gain arising out of the sale of the said property was declared in individual name using their PAN. The other family members do not have any other sources of income. The assessee invested the sale consideration received on the sale of Capital Assets in purchase of residential property in the name of his married widow daughter Smt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection (4), where in the case of an assessee being an individual or a Hindu undivided family, the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or wo years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, one residential house in India (hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,- (a) if the cost of the new asset is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45 ; (b) if the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of the new asset bears to the net consideration, shall not be charged under section 45 : Provided that nothing contained in this sub-section shall app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n which the transfer of the original asset took place, or which is not utilised by him for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139 in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit ; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset : Provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in sub-section (1), then,-(i) the amount by which-(a) the amount of capital gai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y says that the assessee should have purchased/constructed a residential house . 9. Now let us examine the applicability of various case laws decided by various Courts. In the case of CIT Vs. Natarajan [(2007) 287 ITR 271 (Mad)] wherein it was held that the assessee has purchased a property in the name of his wife, the Hon'ble Court held that the assessee will be eligible for exemption u/s. 54F of the Act. 9.1 In the case of Gurunam Singh [(2010) 327 ITR 278 (P H)], it was held that the assessee purchased residential house in the name of wife and the assessee has paid entire sale consideration and merely has included his wife as owner of the property, it would not make any difference and in fact such a contract has to be encouraged which helps in empowerment of women and that the government itself has floated various schemes permitting joint ownership with wife. The Court further observed that the assessee therein should be a constructive owner of the property. 9.2 Further the A.P. High Court in the case of Late Gulam Ali Khan v. CIT [165 ITR 228 (AP)] wherein it was held that the object of granting exemption u/s. 54F of the Act, is that a person who sells a residenti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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