Case Law Details
ACIT Vs Vinay Girish Bajpai (ITAT Mumbai)
Assessee claimed that he has complied with all the requirements of claiming exemption/deduction under section 54 of the IT Act. He submitted that assessee has made the payment to the builder within the stipulated time. There was some issue of obtaining the completion certificate by the builder. Hence, there was some delay in handling over the possession. He submitted that this cannot be a reason to deny the exemption of section 54 on the touchstone of decision of Hon’ble Bombay High court in the case of Girish L. Ragha Panaji vs DCIT in income tax appeal no. 66 of 2015.
Upon careful consideration, we find that assesssee has complied with the condition mention under section 54 of the IT Act to claim the exemption. As pointed out by the Ld. Counsel of the assessee above, the handing over of the possession was delayed due to fault on the part of the builder and assessee has complied with the necessary condition of payment as required. There is a due agreement and part amount was paid. Accordingly, in such situation, the decision of Hon’ble Supreme court in the case of Sanjeev Lal (supra) provides that part payment will also suffice the ingredients of transfer for the purpose of section 54 of the IT Act.
In this view of the matter, in our considered opinion, ld.CIT(A) has passed a reasonable order duly relying upon the decision of Hon’ble Bombay High court. Hence, we do not find any infirmity in the order of ld.CIT(A).
FULL TEXT OF THE ORDER OF ITAT MUMBAI
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