New Delhi, Aug. 5 -- A woman who claimed a Rs.6.92 crore exemption under Section 54F after purchasing a residential property from her husband has won significant relief from the Income Tax Appellate Tribunal (ITAT). The ruling reiterates that a genuine transaction between spouses cannot be treated as a tax avoidance arrangement merely because it results in a tax benefit.

According to The Economic Times, the Income Tax Department had alleged the transaction was a "colourable device" to evade taxes. However, the Mumbai ITAT found no evidence supporting the allegation and allowed the exemption.

As reported by The Economic Times, Motwani, a resident of Juhu, Mumbai, earned Rs.8.31 crore in long-term capital gains (LTCG) after selling unlist...