Capital gain to be offered in the year of execution of sale deed: Exemption u/s. 54 allowed

C. Aryama Sundaram Vs CIT (Madras High Court)

Madras High Court held that JDA executed in 1994, however, sale/ transfer of capital asset was taken place only in March 1999 when the sale deed was executed. Accordingly, capital gain was rightly offered for AYs 1999-2000 and hence exemption u/s. 54 rightly claimed.

Facts- The appellant had returned capital gains for both years arising out of the sale of a residential property. The appellant had been a confirming party in a Joint Development Agreement (JDA) dated 15.12.1994. The agreement provided for sale of

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