Case Law Details
Jayaseelan Vs ITO (ITAT Chennai)
Shri Jayaseelan (the Appellant) has filed the current appeal being aggrieved against the order dated March 5, 2018 passed by the ld. Commissioner of Income Tax (Appeals) (the CIT(A)) for the assessment year 2014-15 wherein the claim of the Appellant claiming benefit under section 54 of the Income Tax Act,1961 (the IT Act) was rejected.
Factually, the Appellant sold his property and claimed exemption under Section 54 of the IT Act in his income tax return. The Assessing Officer (“AO”) however rejected the claim observing that as per the property’s registered document the transferors acknowledged the receipt of rupees 11 lakhs in cash from the Appellant on the date of execution of the document i.e., on July 04, 2016 and the possession was also handed over on July 04, 2016. According to the AO when the property was sold on May 06, 2013 and purchased the property on June 04, 2016 which is two years beyond the transfer of the capital asset, the Appellant is not entitled to the benefit under Section 54 of the IT Act.
The Appellant submitted that he has purchased the property within 2 years. Further, submitted that the seller of the property gave confirmation that they have received the amount of ₹.10,00,000/- on April 08, 2015 and the possession was also given. Therefore, the transfer took place on April 08, 2015 and the Appellant is entitled for the benefit under Section 54 of the IT Act.
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