Wednesday, February 18, 2015

HC denies sec. 54F/54B relief to mother for buying properties in name of her married daughters


In the instant case assessee had made investment in purchase of an agricultural land and residential flat in name of her two married daughters. While computing long-term capital gain she claimed exemption in respect of such properties under sections 54B and 54F.

The AO and as well as Tribunal denied the deduction under Sections 54F and 54B. The learned Counsel submits that his client was entitled to benefit of sections 54B and 54F as the intention of the legislature was to extend the benefit to the members of the family which includes married daughters. The aggrieved assessee filed the instant appeal.

The High Court denies to grant benefit of Sections 54F and 54B to assessee on purchase of properties in name of her married daughters as it did not find any infirmity in the order of Tribunal.

GANTAVIJAYA LAKSHMI V. ITO[2015] 54 taxmann.com 301 (Andhra Pradesh)

Editor’s Note:

We have witnessed many judicial precedents in the recent past on the issue that whether Sections 54F and 54B relief would be available to assessee in respect of properties acquired in name of his/her family members. In certain judicial precedents it was held that purchase of properties in blood relation, viz, spouse, minor daughter/son would provide Sections 54F and 54B relief to assessee. Still this issue is unresolved and now we have to wait and see whether Government will touch upon this controversy in the ensuing budget 2015-16.
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