Dear Members.
I need clarification on one of the practical issue regarding exemption U/s.54F.
An assessee has sold a site and the gain arising out of such transfer is liable for capital gains tax. The proceeds from sale has been invested for purchase of a residential property. However, the new property that is being purchased is in the name of spouse and not the assessee himself. In such a scenario, whether exemption U/s.54F can be availed by the assessee with a contention that the investment made are on account of proceeds from sale of site and as it is in the name of spouse. Please suggest what is the best course of action since the liability will be substantial if the exemption is not claimed.
Can I have any reference of case laws/clarifications of CBDT, if the answer is positive.
Rgds/Dharmaraju
CAclubindia
