Tax exemption denied on half of Rs 1.10 crore reinvestment in jointly owned flat

A man sold his residential property and used the proceeds to buy another flat in Mumbai. The new flat was registered jointly in his and his wife's names, with a total investment of about Rs 1.10 crore. He sought an exemption on the resulting capital gains under Section 54 of the Income Tax Act. The tax authority rejected the exemption for half of the amount invested. The article relates this dispute over the portion attributable to the wife's share of the property.