Is capital gain exemption allowed in huf property if purchased in name of coparcener

Sec 54F of the Income Tax Act mandates that for claiming exemption the property should be purchased by the assessee, however no where in the act it has been stated that the property should be purchased in the "name of the assessee only".

Further, there are various judicial pronouncements which states that if the property is purchased in the name of relative, the assessee will be eligible for exemption u/s 54 or 54F if the property is purchased by the assessee.

In light of the above, it can be opined that the assessee can claim exemption for property sold by him even if the purchase deed is in the name of HUF.

For any further clarification, kindly contact me @ mnshdugar @ gmail.com

First thing I could see in your case is that Karta has acted as in REPRESENTATIVE CAPACITY and not in his Individual capacity because in sell as well as purchase the PAN of HUF has been Quoted.

Second thing as Mr. Manish said there are various case laws upon this when properties has been purchased in the name of relative and still Deduction has been allowed.

So in my opinion you will be certainly be allowed to claim exemption.

Thanks.

Thank you Manish, nitesh for reply. Is there high court or supreme court to support our case

Thank you Manish, nitesh for reply. Is there high court or supreme court to support our case

Thank you Manish, nitesh for reply. Is there high court or supreme court to support our case

Thank you Manish, nitesh for reply. Is there high court or supreme court judgment to support our case

CIT vs V Natarajan (Madras HC)
CIT vs Podar Cements (P) Ltd. (SC)
Late Mir Gulam Ali Khan vs. CIT (AP HC)