The ITAT (Income Tax Appellate Tribunal) has made varying rulings on whether exemption under Section 54F of the Income Tax Act can be claimed when a new property is purchased in the name of a family member, such as a mother or wife. *Key Points:* - *Exemption Eligibility:* Section 54F provides exemption from capital gains tax if the sale proceeds of a residential house are invested in the purchase or construction of another residential house within a specified period. - *Property in Mother's Name:* In a specific case, ITAT allowed exemption under Section 54F when the assessee invested in a house for his mother, appreciating the transparency and good faith in the transaction. - *Property in Wife's Name:* However, different ITAT benches have given conflicting rulings on this matter: - *Pune Bench:* Denied exemption under Section 54F for a house purchased in the wife's name. - *Chennai Bench:* Allowed Section 54F relief when a new house was purchased in the wife's name, who was separately assessed. - *Another ruling:* ITAT directed the Assessing Officer to approve the deduction under Section 54F for a property purchased in the wife's name. *Important Case Laws:* - *ITO vs. Narasimha Reddy Duthala (ITAT Hyderabad):* Exemption under Section 54F was allowed when the assessee gifted a residential house to his daughter. - *Vidjayane Durairaj vs. ITO (ITAT Chennai):* Section 54F relief was allowed even when the new house was purchased in the wife's name, who was separately assessed . These rulings highlight the complexity and nuance of tax laws regarding exemptions for properties purchased in family members' names. The outcome often depends on the specific circumstances and the ITAT bench hearing the case. "Share this update with others and stay updated by following the WhatsApp channel!"