INCOME TAX ACT, 1961

--Capital gains--Deduction under section 54FPurchase of residential house in the name of assessee's wife.--Assessing officer disallowed deduction under section 54F claimed by assessee holding that investment in the residential house should be made in assessee's name and not in the name of his wife. Held: Was not justified, as with regard to the rule of purposive construction and section 54F being beneficial provision it does not require that new residential property should be purchased in the name of assessee. Moreover, assessee purchased new house in name of his wife and not in the name of stranger, therefore, the entire investment had come out of the sale proceeds of assessee.

Income Tax Act, 1961, Section 54F

IN The Delhi High Court

Badar Durrez Ahmed & R.v. Easwar

CIT v. Shri Kamal Wahal

ITA 4/2013

11 January, 2013

Petitioner by : N. P. Sahni, St.Counsel with Mr. Ruchesh Sinha, Adv.

For the Respondent

R. V. Easwar, J (Oral)