Date of possession is relevant for claiming Section 54 Exemption

Sompalsingh J. Kataria Vs ITO (ITAT Mumbai) The case of Sompalsingh J. Kataria vs. ITO (ITAT Mumbai) sheds light on the pivotal role of the date of possession in determining eligibility for capital gains deduction under Section 54 of the Income Tax Act, 1961. This section stipulates the conditions under which a taxpayer can claim deductions on capital gains arising from the transfer of a residential property. The ITAT Mumbai’s decision emphasizes the importance of the possession date over the agreement date for computing the limitation period under Section 54, setting a significant precedent...