Section 54- Purchase date is date of possession of flat on which assessee pays final consideration

ITO Vs Sunil Shiv Khanna (ITAT Mumbai) We are of the view that the assessee’s claim of deduction u/s. 54 of the Act is to be reckoned from the date of handing over of the possession of the flat by the builder to the assessee i.e. 11.09.2009, and if we take that date, the assessee is entitled to deduction u/s. 54 of the Act because the assessee has sold his residential flat on 24.02.2010.  For the purpose of section 54, the relevant date is the date on which assessee pays final consideration amount and takes possession of the flat and not on which substantial payments are made. FULL TEXT OF ...