Case Law Details
ITAT held that date of final occupation of the property should be considered for calculation the period of eligibility for deduction u/s 54 of the Act. If the date of possession i.e. March 2009 is taken as date of purchase of new flat as contended by the assessee in its case the assessee is entitled to deduction u/s 54 of the Act as assessee has sold residential flat on 11.09.2009 and satisfied the requirement to purchase the new residential property within the period of one year before the date of transfer of the asset sold. Thus, we allow the claim of the assessee for deduction u/s 54 of the Act.
Full Text of the ITAT Order is as follows:-
1. This appeal is filed by the assessee against the order of the Commissioner of Income Tax (Appeals) -20, Mumbai dated 17.04.2014 for the Assessment Year 2010-11. The only grievance of the assessee in his appeal is that the Ld.CIT(A) erred in denying the deduction u/s 54 of the Act.
2. Briefly stated the facts are that the assessee sold residential house property and claimed deduction u/s 54 of the Act. The Assessing Officer required the assessee to justify the claim for deduction u/s 54 of the Act for the reason that the assessee sold the property by entering into formal sale agreement on 11.09.2009 and since exemption u/s 54 of the Act is eligible for a new residential house which is purchased within the period of one year prior to the date of transfer of capital asset being residential house. The property was purchased by the assessee by entering into agreement dated 18.08.2007 and in which case according to the Assessing Officer the assessee not complied with the condition of purchasing a new flat within a period of one year prior to transfer of the existing property.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
