Deduction or exemption under section 54 for purchase of hous

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Debabrota Roy (Querist)
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02 May 2015 In this case, Mother sells her property and purdhase another one from thr proceeds in her son`s name only (and not her name)

Will she be liable to pay the capital gain tax in such a case where new property purchased is not registered in her name but in the name of her son, but source of fund are from her old property sale.

Kindly help me with reply and case laws.

DEBABROTA ROY

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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03 May 2015 Prima facie, exemption will not be allowed to the mother meaning thereby she will be liable to pay capital gains tax.

Message likes : 1 times

Debabrota Roy

Debabrota Roy (Querist)
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05 May 2015 Dear Sir,
Please note this section 54 provides an opportunity to the assessee to buy a new house .Mother becomes old and want to stay with her son.Moreover mother`s Bank account shows amount transferred in the name of son to buy flat in the name of son.Please go through Andhra Pradessh High Court decision in case of Late Mir Gulam Ali Khan vs CIT(1987) 165 ITR 228(AP).Kindly go through this case, and help me to understand whether this case is applicable for mother and son case.
For this act of kindness I will remain ever greatful to you
DEBABROTA ROY

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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05 May 2015 The moot point is whether reinvestment should be in assessee's name only. Issues came up to court level since law is silent. That is why, I used the word Prima facie in my earlier reply. Judiciary may take views for and against the assesee on a case to case basis depending on the facts.
Try with the cited case and DIT V MRS. JENNIFER BHIDE 252 CTR 444 (Kar).

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