Smt. Geeta Singh v. ACIT - Section 54 exemption on long-term capital gains

The ITAT Lucknow Bench held that where the assessee reinvested capital gains from sale of residential property in a new residential property within the prescribed period, the Section 54 exemption should not be denied merely because the new property was purchased in joint names. The Tribunal held that where the assessee has invested sufficient amount out of her own funds and is the primary owner/co-owner, the exemption under Section 54 should be allowed proportionally. Reinforces that the ownership of new property need not be exclusively in the assessee's name for Section 54 to apply, provided the assessee bears the investment cost.

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