Sec 54 Benefit Upheld – Investment Within Time Sufficient, Possession Delay Not Fatal

Arvinder Singh Sahni Vs DCIT (ITAT Mumbai) In this case, the assessee earned long-term capital gains of ₹2.30 crore on sale of a residential property and claimed exemption under section 54 by investing in two adjoining flats at Trump Tower. The investment was made within one year prior to the date of transfer, thereby satisfying the statutory condition relating to timing of purchase. However, the Assessing Officer denied the exemption on the ground that possession of the new property was scheduled to be received beyond the prescribed period of three years. This view was also affirmed by the ...