Capital gain u/s 54f

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Udit Mathur (Querist)
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04 January 2012 our client sold Long term capital assets for Rs. 25 lakhs and earned capital gain. now assessee invest full amount Rs. 25 Lakhs in flat (flat in which he invest Rs. 25 Lakh, he already have 50% ownership in that flat i.e. co - owner) now my query is that whether assessee get benefit u/s 54F if he already have 50% ownership and acquire remaining 50% ownership from co - owner procedd received from sale of long term capital assets.
please also give some case law in this regard.
Thanking You,

Aditya Maheshwari

Aditya Maheshwari (Expert)
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04 January 2012 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.).