Appeal partially granted under Income Tax Act; delay condoned. Section 23(4) addition dismissed.

The Tribunal partly allowed the appeal, granting the deduction under section 54 of the Income Tax Act and condoning the delay in filing the appeal. The addition under section 23(4) was dismissed as the assessee did not press this ground during the hearing.

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Issues Involved:
1. Condonation of delay in filing the appeal.
2. Claim of deduction under section 54 of the Income Tax Act, 1961.
3. Addition under section 23(4) of the Income Tax Act, 1961.

Condonation of Delay:
The appeal was delayed by 159 days. The assessee argued that the delay was unintentional, as he missed the email notification regarding the order's availability on the e-filing portal. The Tribunal, referencing the Supreme Court's decision in Collector Land Acquisition, Anantnag Vs. MST Katiji, condoned the delay, emphasizing that substantial justice should prevail over technicalities.

Deduction under Section 54:
The assessee contested the denial of exemption under section 54F of the Act. The Assessing Officer (AO) had denied the exemption on the grounds that the new flat was purchased beyond one year from the sale of the old flat. The Tribunal, however, noted that the possession of the new flat was handed over on 07/04/2016, which is within two years from the sale date of the old flat (11/02/2016). Citing the Bombay High Court decision in CIT v/s Smt. Beena K. Jain, the Tribunal held that the relevant date for section 54F is when the full consideration is paid, and possession is obtained. Thus, the assessee was entitled to the deduction under section 54.

Addition under Section 23(4):
The assessee chose not to press this ground during the hearing. Consequently, the Tribunal dismissed this ground as not pressed.

Conclusion:
The appeal by the assessee was partly allowed, with the Tribunal granting the deduction under section 54 and condoning the delay in filing the appeal. The addition under section 23(4) was dismissed as not pressed.

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