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55. (2025) 178 taxmann.com 355 (Delhi Trib)
ACIT vs. Merilina Foundation
A.Y.: 2011-12
Date of Order : 9.9.2025
Section: 54F
A private trust set up for identified persons is entitled to claim exemption under section 54F upon investment of proceeds into a residential house.
FACTS
The assessee was a private trust. It sold a flat and claimed exemption under section 54F in respect of capital gains arising from sale of flat. During reassessment proceedings under section 147. The Assessing Officer disallowed the claim of exemption on ground that section 54F was applicable only to individual and HUF and not to a trust.
On appeal, the Commissioner (Appeals) allowed the claim of the assessee.
Aggrieved, the tax department went in appeal to the Tribunal.
HELD
The Tribunal observed as follows:
(a) It is the fact that the assessee was a private trust and it was set up for some identified
