Beneath section 54F of the Income Tax Act the Income Tax Appellate Tribunal (ITAT), Jaipur permits for deduction in respect of residential house property purchases in the name of wife.
The taxpayer Dharamvir Singh has the income generated from the house property, capital gain, and interest. He furnishes the return of income showing the total income of Rs 1,73,050. Beneath section 143(3) or 147 of the Act, the assessment was finished through the total income of the taxpayer at Rs 17,50,620. From the order of AO, the taxpayer was not satisfied and put the matter towards CIT(A). But the CIT(A) post seeking the case of both the parties, supported the addition executed by the AO.
The taxpayer repeated the arguments as this was urged to the lower council and submitted that an agreement for the sale of the industrial plot was implemented for the total sale of Rs 11,25,000. But the wholesale recognition was taken via cheque in 2 installments and the mentioned amount has been furnished in a bank account which was handled by the taxpayers and therefore the profession of the property was managed over to the buyer and in this concern, the whole transactions were executed.
It was provided that the enrollment of the plot in the question take place in April 2011 and in the meantime the DLC value per Sq.Mt. surged from Rs 1500 to Rs 2000 per Sq.Mt. thus AO applied raised DLC value despite computing the sale price of the plot in the question. The Income Tax Appellate Tribunal (ITAT) said that they saw AO has not permitted the improvement cost and building the investment through the taxpayer in the purchase of the residential house in the name of his wife.
The two judges Sandeep Gosain and Vikram Singh Yadav ruled that beneath section 54F of the Act the taxpayer is subjected to the deduction with respect to the residential house property towards the name of his wife. While acknowledging the facts and situation in the case the ITAT stated to delete the addition which so furnished.
