ITAT Mumbai Allows Section 54 Deduction as Allotment Letter & Payment Were Sufficient

ITO Vs Vaibhav Vijay Sawant (ITAT Mumbai) The ITAT Mumbai dismissed the Revenue’s appeal and upheld the assessee’s claim for deduction under Section 54 of the Income Tax Act in respect of long-term capital gains arising from sale of a residential flat. The assessee had invested the entire capital gains amount of Rs.2.52 crore in under-construction flats in the “Millionist-14” project and received allotment letters from the developer, along with making substantial payments exceeding the claimed deduction. The Assessing Officer denied the deduction on the ground that possession had not b...