TaxTMI 
TaxTMI 
2015 (12) TMI 499
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....duction u/s 54 of the Act pertaining to the cost of another flat. The assessee had booked the flat with M/s Life Style Property Venture in the year 2004 and the agreement was registered on 01-12-2004. He paid the consideration in instalments as per the agreement. He finally got the possession on 30th June, 2007. The assessee claimed that the date of possession of flat should be considered as the date of purchase of flat, where as the AO took the view that the date of purchase should be considered as the date of entering of agreement, viz., 1.12.2004. Since the deduction u/s 54 of the Act could be availed, inter alia, only if the residential house was purchased within one year prior to the date of house giving rise to capital gain and since ....
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....sed within one year before the date of transfer of the original residential house. Thus, if a new house is constructed within one year prior to the date of transfer of the original residential house, the deduction u/s 54 is not available. 4. In the instant case, the assessee has entered into an agreement on 01.12.2004 with a builder named M/s Life Style Property venture for purchase of a residential house at Kalpataru Horizon Worli. As per the registered sale agreement, the assessee was to pay Rs. 31,98,840/-before November, 2004 and the remaining amount in instalments. As per the agreement, the builder constructed the residential apartment and finally handed over the possession on 30.06.2007. The moot question is whether the transaction o....
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.... case of "Construction". The relevant observations are extracted below:- "The condition laid down in the case of purchase of the residential house is that the house must have been purchased one year prior to the sale of the capital asset or two years subsequent thereto. In the case of a residential house the condition laid down is that the residential house must have been constructed within three years after the sale of the capital asset. Therefore, for proper application of this section it has to be seen whether it is a purchase or a construction in the above case. Vide Board's Circular No. 471, dt. 15th Oct., 1986 it has been explained that to qualify investment for construction under s. 54F the crucial date is the date of allotment....
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....00/-. The assessee had paid booking amount of Rs. 1,00,000/- to the builder before the due date of filing of the return of income u/s 139(1) for the assessment year 2006-07 and the balance amount had been paid in installments after the said date. The total amount paid by the assessee to the builder was Rs. 14,62,500/- till 16.2.2009. In the back drop of this factual position, it is required to be seen whether the assessee had fulfilled the conditions of section 54 of the Act so as to make him eligible for claim of exemption u/s 54 of the Act. The first condition is that the capital gain should have been invested in the purchase of new residential house within a period of two years from the date of transfer or for construction of new residen....