Exemption of capital gains under section 54

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2015 IF AN ASSESSEE HAS SOLD RESIDENTIAL HOUSE PROPERTY AND PURCHASED ANOTHER PROPERTY WHICH IS IN THE NAME OF HIS MAJOR SON BUT PAYMENT IS MADE FROM THE ACCOUNT OF ASSESSEE HIMSELF... NOW THE QUERY IS WHETHER ASSESSEE IS ELIGIBLE FOR EXEMPTION UNDER SECTION 54?

ITS URGENT...
PLZ REPLY

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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23 March 2015 if it is only in ur major sons name then not allowed but if u and ur son both are joint owners then allowed

Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2015 BUT THE SECTION 54 OF INCOME TAX ACT IS SILENT ABOUT OWNERSHIP.. IT SAYS ONLY INVESTMENT IS IMPORTANT.. AND HERE TRANSACTION TOOK PLACE THROUGH ASSESSES BANK ACCOUNT NOT HIS MAJOR SONS ACCOUNT?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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24 March 2015 no, as it uses the words assessee so when ur selling a property so u become party to transaction and for claiming deduction by investing in other property u need to be thw "owner"

transaction may take place from ur sons account but imp is who was the owner of old property sold and who is the owner of new property.

Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2015 https://taxguru.in/income-tax-case-laws/section-54-benefit-assessee-flat-purchased-wifedaughters.html

SIR BUT THIS ARTICLE AND CASE LAWS MENTION IN THAT SAYS THAT EXEMPTION IS ALLOWED..

AND YOU ALSO JUSTIFY WHY IT SHOULD BE NOT ALLOWED..

AS THERE IS INVESTMENT TOOK PLACE.. THEN WHY WE CAN'T TAKE EXEMPTION?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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24 March 2015 ok u can rely on bhide's case and can take deduction but in case if ur not from pune then ito can deny this and may disallow as that is not binding on him as its not pronounced by SC or by Bombay HC

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