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In CIT vs V. Natarajan (2006 287 ITR 271 Madras), the assessee sold a residential building at Bangalore and purchased another residential building at Chennai. The new residential house acquired in Chennai was registered in the name of his wife.

The court held that even though the assessee had invested the capital gain in acquisition of residential house in the name of his wife, the eligibility for deduction under Section 54 is satisfied.

The reasoning for the conclusion was, however, not elaborated in the decision.

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Q: What was the case law in relation to CIT Vs Natrajan?
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