Mohd Sarfaraz Latibani (Tax Consultants) (284 Points)
11 March 2017I am selling a commercial property and wants to invest the amount of Capital Gain amount in my House Construction (house is registered in Sons's name), I want to know will I be allowed exemption on Capital Gain Tax or will I have to pay Capital Gain Tax.
Thanks
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174792 Points)
Replied 11 March 2017
There is litigation but it can be asked based on:::
In a recent case of Commissioner of Income Tax Vs Kamal Wahal the honorable Delhi High Court ruled in assessee’s favor. The honorable Court relied upon its own judgment in the case of CIT v. Ravinder Kumar Arora in which it was laid down that where the entire purchase consideration was paid only by the assessee and not a single penny was contributed by any other person, preferring a purposive construction against a literal construction, more so when even applying the literal construction, there is nothing in section 54F to show that the house should be purchased in the name of the assessee only. Section 54F in terms does not require that the new residential property shall be purchased in the name of the assessee; it merely says that the assessee should have purchased/constructed 'a residential house'
Read more at: /articles/exemption-u-s-54-for-asset-purchased-in-different-name--24052.asp
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