Long term capital gain on RH property

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One of my friend had a R. H. property in his name and sold it, out of that proceeds he bought a new house in his father name.Whether exemption can be claimed by son.
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V. Natarajan v. Commissioner of Income-tax (2006): Mr. Natarajan owned a house property in Bangalore. He sold the said property and purchased a property in Chennai in the name of his wife. The exemption claimed under sec 54 was disallowed by the Assessing Officer. It was held by Hon’ble Madras High Court that if the assessee is the owner of the property and the capital gain on the sale of the property is assessed in the hands of the assessee, he is entitled to exemption under section 54, irrespective of the fact that the property is purchased in the name of his wife.

Further, to determine the actual investor, local taxes on registration of purchase of new house should be paid by assessee.

In my view, it's similar to purchase of house on your name and then re-register on your father's name (as a gift).

Thank you so much for the reply sir

Another doubt is whether if the assessee is NRI also the impact is the same?

Yes. It remain same.

Thank u sir

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