capital gains

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2011 In one of the case the order u/s 143(3) is passed disallowing the claim u/s54 for the investment in house property by the assessee, as per the assessing officer, her fault was she purchased the h/p along with her husband, but the entire source for the payment was met out of her own funds, raised by selling the old h/p.
Now I have to make an appeal, pl provide me the relevant case laws.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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12 January 2011 Exemption is allowable even if a share in new property is purchased - When the Act enables an assessee to get exemption from payment of tax in respect of purchase or construction of a residential house, purchase or construction of a portion of the house should also enable the assessee to claim the exemption. It is possible that a person may not be in a position to purchase the whole residential house at a time and in the circumstances an assessee might purchase a portion of the house or some interest in the house. Thus, where the assessee sold a house and from the sale proceeds purchased 15 per cent undivided share in a house property from her husband and her son, and she was earlier residing in that house, exemption under section 54 can be allowed - CIT v. Chandanben Maganlal [2000] 245 ITR 182 (Guj.).