In an assessee-friendly ruling, the Income Tax Appellate Tribunal (ITAT), Delhi bench has recently allowed capital gain exemption under section 54 of the Income Tax Act, 1961 to the assessee for the purchase of new property in the name of his son’s name. The Tribunal, while delivering the order, observed that the exemption is allowable since the capital gain from the sale of the old asset was used for investing in the name of a person who has a direct relationship with the assessee.
In this case, should assessee purchase a new property jointly with son or can it be purchase by son only to claim ltcg exemption?
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