Tribunal denies Long Term Capital Gain & Section 54 deduction based on ownership proof & possession timing.

The appeals filed by various assessees for the Assessment Year 2009-10 were consolidated due to identical facts. The tribunal dismissed the appeals, denying Long Term Capital Gain and deduction under Section 54 of the Act. The denial of Long Term Capital Gain was based on the discrepancy between the sale deed execution date and the possession claim. Additionally, the denial of the deduction under Section 54 was due to the lack of evidence establishing ownership rights over the property. The tribunal's decision was consistent across all appeals, with orders issued on 20th Jan., 2022.

---

---

Issues Involved:
1. Denial of Long Term Capital Gain
2. Denial of deduction u/s.54 of the Act

Issue 1: Denial of Long Term Capital Gain:
The appeals filed by different assessees for Asst. Year 2009-10 were consolidated due to identical facts. The assessees raised two main issues: denial of Long Term Capital Gain and denial of deduction u/s.54 of the Act. The Assessing Officer invoked section 50C of the Act to calculate capital gains based on SRO value, differing from the sale consideration by the assessee. The assessee claimed possession of the property since 2001, but the sale deed was executed in 2006. The appellate tribunal held that the sale occurred in 2006, dismissing the assessee's claim for Long Term Capital Gain due to lack of evidence supporting possession since 2001.

Issue 2: Denial of Deduction u/s.54 of the Act:
Regarding the claim of deduction u/s.54 of the Act, the assessee purchased a residential property but failed to provide evidence of ownership rights, being only a GPA holder. The tribunal referred to Section 54 of the Act, emphasizing the requirement for the assessee to purchase or construct a property to claim the deduction. As the assessee did not establish ownership rights over the property, the claim for deduction u/s.54 was dismissed by the authorities. The tribunal upheld the decision, stating that without evidence of property ownership as per Section 54, the assessee's claim for deduction could not be accepted.

In conclusion, both appeals by the assessees were dismissed based on the denial of Long Term Capital Gain and deduction u/s.54 of the Act. The tribunal's decision was consistent across the appeals due to similar facts. The orders were pronounced on 20th Jan., 2022, and a copy of the common order was directed to be placed in the case file.

---