Case Law Details
Case Name : CIT Vs Mrs. Shakuntala Devi (Karnataka High Cour)
Related Assessment Year : 2003-04
Courts :
All High Courts Karnataka High Court
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Sale consideration received by the assessee is entitled to benefit under Section 54 of the Income Tax Act, even though the transaction for purchase of new property was not completed and possession was also not handed over to the assessee within 2 years.
Brief Facts of the Case:
Assessee had sold a flat at Mumbai and had worked out a LTCG and had claimed exemption u/s 54 of the Act on the ground that she had reinvested the said amount for purchasing another property at Mumbai by paying an advance. The AO held that the sale transaction of new property had not been concluded, no registration of s...
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OFFHAND
One more instance, latest in the series, in which the court has, accepting the reasoning advanced, decided the issue in asses- see’s favor. Earlier, the Bom HC has choosing to go by a rigid interpretation of sec 54F as canvassed by the Revenue , handed out its opinion in its favor. For a critique thereof, suggest to look up the material placed in and shared through public domain (Facebook, Linkedin, so on).
According to the suggested line of reasoning as shared therein , and based on/in the light of that discussion, in further possible proceedings, it could be forcefully urged that the Kar. HC’s opinion is, by any sound logic, a better opinion, hence deserves to be judiciously upheld.
For an independent study, in comparison, of the two cited case law, – particularly by eminent law experts in field practice, -apart from the respective factual matrix, certain other relevant aspects – not canvassed hence not gone into by the courts- which could have been stressed to support asses see’s claim might be worth to focus on.
liked the article on sec 54.exemption despite non completion of new property purchase deal
When the condition laid down in the law is very clear and leaves no ambiguity, very strange to see that court ignoring those conditions and taking a view based on the intention of law.