Long term capital gains

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2014 If father sells his flat and earns long term capital gain, and he wants to invest this money in the flat to be purchased by his son, then is his father is liable to pay the tax on LTCG.if not please give me the case laws.
Thanks.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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06 June 2014 there is a house divided on this issue. While in most of the cases courts have ruled in favor of the assessee with liberal interpretation of the section 54/54F, in some of the recent judgments exemptions have been denied.

in cases Prakash vs. ITO 312 ITR 40, Jai Narayan vs. ITO 306 ITR 335, Kalya v CIT 251 CTR and 174 Vipin Malik (HUF) vs. CIT 330 ITR 309, exemption was denied.

on the other hand, in case of CIT vs. Kamal Wahal 351 ITR 4,CIT vs. V Natarajan 287 ITR 271 and Mir Gulam Ali Khan vs. CIT 165 ITR 228 the exemption was allowed

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