A woman assessee has sold her house and deposited the amount of capital gain of Rs.30,00,000/- in capital gain account scheme, 1988 with a nationalized Bank.
Now she wants to buys a residential flat in joint name with her son.
The Cost of new house is Rs.60,00,000/-. The amount of deposit will be utilized for purchasing the said flat.
However balance amount of cost will be financed through loan from some other bank.
The loan of balance Rs.30,00,000/- will disbursed in the name of her son and name of the son will also be mentioned as first owner in the sale agreement of new flat.
Now whether the amount of deposit of Rs. 30,00,000/- utilized for purchase of new flat will chargeable to tax since name of mother is not mentioned as first buyer/owner in the sale agreement.
Expert Please guide on the above issue.
Since the bank with which the amount is deposited as per capital account scheme is not allowing to withdraw the same deposit and arguing that the said amount will be chargeable to tax.
Please do the needful by providing me a related case laws if possible.
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