Case Law Details
Amit Parekh Vs ITO (ITAt Kolkata)
Section 54 of the Act provides that the assessee has to purchase a house property for the purpose of his own residence within the period of one year on or after the date on which the transfer of property took place or assessee should have constructed a house property within a period of 2 years after the date of transfer. We find that it is clear from the AO’s order that the assessee sold his residential units during the financial year 2009-10 and purchased a new residential flat, got its possession on 17-06-2010 and it is well within time prescribed in the Act involving section 54 and thereby the assessee is entitled to claim exemption u/s. 54 of the Act. Merely because assessee had availed house building loan of Rs. 82.50 lacs from bank for purchasing a new residential unit, that cannot act as a disqualification for claim of exemption u/s. 54 when the primary conditions imposed in Sec. 54 of the Act were satisfied.
FULL TEXT OF THE ITAT JUDGMENT
This appeal by the Assessee is directed against the order of the Commissioner of Income Tax (Appeals), 8, Kolkata dt. 30-11-2015 for the A.Y 2010-11.
2. The only issue is to be decided as to whether the CIT-A is justified in confirming the order of AO in denying exemption u/s. 54 of the Act in the facts and circumstances of the case.
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