Property sold

This query is : Resolved

Ravikumar (Querist)
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12 November 2013 Dear sir In a last month my father has sold our one plot(land) on his own namefor rs 800000.and purchase one flat on my mother name for rs 1050000.kindly suggest me he can do the same?

CA Vivek R Trivedi

CA Vivek R Trivedi (Expert)
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12 November 2013 yes, he can do same, and can claim exemption from capital gain , CIT v KAMAL WAHAL (2013) Delhi highcourt,
Exemption can not be denied only on ground of property is purchased on name of wife.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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12 November 2013 Vivek is right that such investment shall be allowed for claiming deduction under 54/54F. However, there have been cases wherein such investments were disallowed.

For eg in case of ITO v. Shri Niranjan Singh Bajaj, ITA No. 2040/Mum./2006 (mum ITAT)

therefore, before taking any position it would be advisable to go through both: the judgments in the favor and against the assessee. Also, see if the jurisdictional High Court has given any favorable judgment or not because this issue has normally been handled by different high courts and therefore it is important the High Court in your state has taken positive view on this issue.