Wife buys husband's Rs 7.5 crore Mumbai property, ITAT allows tax benefit

The tax tribunal held that the Income-tax (I-T) department could not deny the exemption merely based on suspicionBuying a residential property from one's own spouse does not, by itself, make the transaction a colourable device to avoid tax, the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has held, allowing a woman's claim for exemption under Section 54F after she purchased a Mumbai property from her husband for Rs 7.5 crore.The tax tribunal held that the Income-tax (I-T) department could not deny the exemption merely on the basis of suspicion that the transaction between the spouses was designed to avoid tax, particularly when the transaction was carried out within the legal framework and the alleged business loss of the husband (which would help him set off the gains on sale