Sec. 54 & 54F of Income Tax Act, 1961— Capital Gain—The assessee has shown income from salary and other sources during the year and also shown long term capital gain on sale of two properties. This long term gain amount has been invested in purchasing another property in the name of his wife Smt. Vedmati Hooda. It was claimed by assessee during the assessment proceedings that he has fulfilled/all the technical conditions for exemption of long term capital gains under sections 54/54F of I.T. Act, 1961 and in support of this claim, the assessee relied on several decisions of different Courts/ITATs. However, the AO did not accept the explanation of the assessee and held that “the assessee is not entitled to the benefit conferred under section 54B if the subsequent property is purchased by a person other than the assessee, including his close related even such as wife and children.” The A.O. denied the exemption under sections 54/54F of I.T. Act, 1961, to the assessee and made addition. The assessee challenged the addition before the CIT(A). CIT(A) dismissed the appeal relying on the decision of Punjab & Haryana high court. Tribunal held that the appeal of the assessee was decided by the CIT(A), New Delhi. Therefore, CIT(A) is bound to follow the Judgments of the Hon’ble Delhi High Court.
 since the entire sale amount of long term capital gain have been invested in purchase of other property in the name of wife of assessee, assessee would be entitled for exemption on account of long term capital gains. In this view of the matter, Tribunal set aside the Orders of the authorities below and delete the entire addition. The A.O. was directed to allow exemption of assessee. The appeal of assessee was allowed. --- SHRI RAMPHAL HOODA vs. ITO. [2020] 23 ITCD Online 59 (DEL)