ITAT Chennai Upholds Section 54/54F Capital Gain Deduction despite Delayed Possession

Anil Kirthisimhan Wijeyanayake Vs ACIT (ITAT Chennai) In a pivotal case between Anil Kirthisimhan Wijeyanayake and ACIT, ITAT Chennai ruled that delays in handing over the possession of a flat by the developer do not undermine an assessee’s claim for capital gain deductions under Section 54 and 54F of the I.T. Act, 1961. The issue at the heart of the matter was the timing of the flat possession against the three-year rule for exemption claims under Section 54. The assessee, along with Mr. Sunil Wijeyanayake, had entered into a Joint Development Agreement with M/s Foundation One Infrastru...