One of my client has sold his property and has constructed another property in his wife name. ITO proposes to disallow exemption on capital gains on the ground that newly purchased property is not in his name rather it is in Wife's name.
I have told assessing office that as per Benami Prohibitions Act 1988 Sec 3(2)purchase of property by husband in the name of wife is permissible.
20 December 2008
Pl read Third ITO Vs. S.Varadarajan(1989) 33 TTJ (Mad)466 .Decision is exemption u/s 54 should not be denied on the technical ground that the reinvestment was not in the name of the assessee.
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