Section 54F of Income Tax Act, 1961— Exemption u/s 54F— The only issue before us is in respect of denial of deduction claimed by the assessee u/sec. 54F of the Act. The Assessing Officer disallowed the claim of the assessee mainly on the ground that the investment made in the house property was not in the assessee’s name.

the Assessing Officer stated in his report that no proof whatsoever could be furnished by the assessee within the stipulated period of 03 years as required u/sec. 54F of the Act and also observed that the said property was stated to be constructed in the land belonging to the husband of the assessee and the property tax assessment was made in the name of the husband of the assessee. Therefore, the Assessing Officer by relying on the decision of the ITAT, Visakhapatnam Bench in the case of Ganta Vijaya Lakshmi Vs. ITO in ITA No. 253/VIZ/2012, dated 22/07/2013 denied the deduction claimed u/sec. 54F of the Act.

Held that— By considering the facts and circumstances of the case, the benefit u/sec. 54F cannot be denied to the assessee simply because sale proceeds invested in a plot belonging to her husband. Section 54F is being a beneficial provision. As per the judgments of various High Courts and the tribunals where investment is made by the spouse, benefit has been allowed by construing the definition of ‘assessee’ liberally. we are of the opinion that the assessee is entitled for deduction u/sec. 54F of the Act. Thus, these appeals filed by the assessee are allowed. [SMT. SIRIKI APPALA KONDAMMA VERSUS ITO, WARD-4 (2) , VISAKHAPATNAM.] [2019] 15 ITCD Online (58) [ITAT VISAKHAPATNAM]