Facts of the Case
HUF sold Capital Assets and amount had been invested for purchase of new residential house in name of some of its members instead of assessee (HUF)
Whether deduction under section 54F in hands of HUF would be allowed ?
Decision of High Court
Mere technicality that the sale deed was executed in the name of member of the HUF rather not HUF, would not be sufficient to defeat the claim of deduction. By mere names of the purchasers in the sale deed, the rights of the HUF and other members of the HUF do not get defeated. If at all, the persons' named in the sale deed hold the property of the trust for and on behalf of HUF and the other members of the HUF.
The names of two members of the HUF shown in the sale deed was only a cosmetic in nature.
In the result, Tax Appeal is dismissed.