Wife sold shares, bought husband’s Rs 7.5 crore property; taxman send notice

What if you use your proceeds from long-term capital gains to buy a property owned by your spouse? Is that tax avoidance? In one such case a woman bought her husband’s property from her long-term capital gains and the Income Tax Department served her a notice.The department did not accept the transaction at face value. The Assessing Officer treated the arrangement as a colourable device intended to reduce the family's tax liability.What the case is aboutWhen a woman sold her unlisted shares, she reported long-term capital gains of Rs 8.31 crore. In June 2021, she put Rs 6.91 crore into a residential property on Juhu Tara Road, Mumbai, and claimed exemption under Section 54F.There was, however, one detail that caught the attention of the Income Tax Department.