Capital Gain Exemption Allowed by Delhi ITAT in case of property sold in Individual person and investment is done two properties in two names
In the case Praveen Tyagi vs. ITO, the ITAT Delhi ruled in favor of the assessee (Praveen Tyagi), allowing a deduction under Section 54F of the Income Tax Act. The property sold was inherited jointly by Tyagi and his mother, though sold in his name alone. He used the sale proceeds to purchase two new properties, one of which was registered in his mother’s name. The CIT(A) had partially disallowed the deduction, claiming the split ownership wasn’t eligible. However, the ITAT held that since the property was inherited and the entire sale proceeds and investments were reflected in the assessee’s return, the deduction under Section 54F is allowable in full, considering the transaction as tax-neutral and consistent with inheritance laws under the Hindu Succession Act.
The copy of the order is as under:
