Capital gain

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akhil manak bohra (Querist)
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02 June 2017 Suppose there is 'A' who is having a land acquired on 01.01.1982 for 50,000 . He sells that land on 01.01.2017 for 2 crores. Now, suppose the capital gain arises is 1.9 crore. If 'A' wants to buy another land for 1.9 crores for claiming exemption in capital gain u/s 54F. If he purchases this new land in the name of his son 'B' to save the stamp duty cost which would have occurred later on during transfer. Then, will this impact 'A' to claim the benefit of Capital Gain exemption u/s 54F.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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02 June 2017 It would not impact if assessee satisfies all other conditions of section 54F. Though the AO may insist that new asset was not purchased in the name of assessee himself, but assessee may take the help of Delhi HC judgments in Ravindra Kumar Arora and Kamal Wahal, where investments were made in wife's/joint names and was allowed to the assessee.

akhil manak bohra

akhil manak bohra (Querist)
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05 June 2017 This is the case of father and son. Will this case of Kamal wahal apply in this matter.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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05 June 2017 Going by the ratio decidendi investments could be made in joint names. and the facts were identical.

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