Case Law Details
Bal Kishan Atal Vs ACIT (ITAT Delhi)
Conclusion: Assessee was entitled to exemption under section 54 even if he had not taken possession nor the purchase deed had been executed within the period of three years because the delay in obtaining possession and getting purchase deed executed was on account of the developer and was by reason beyond the control of assessee.
Held: During the year under consideration, assessee sold a property and claimed deduction under section 54 after claiming indexed cost of acquisition. AO disallowed the deduction on the premise that assessee had not taken possession nor the purchase deed had been executed within the period of three years. It was found that there was a complaint filed by La Tropicana, Resident Welfare Association against the developer with National Consumer Disputes Redressal Commission. Thus, the fact that delay in obtaining possession and getting purchase deed executed was on account of the developer and was by reason beyond the control of assessee. Assessee had made substantial payment of Rs.62,68,311/-. thus, exemption under section 54 could not be denied to assessee.
FULL TEXT OF THE ITAT JUDGEMENT
This is an appeal filed by the assessee against the order dated 29.02.2016 of ld. CIT(A) for the assessment year 2012-13 on the following grounds :
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