TaxTMI 
TaxTMI 
2019 (1) TMI 1130
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....g the aforesaid order of CIT(A) against allowing part exemption u/s 54F of the Act to the assessee. 2. Since the issue raised by both sides in their respective appeals is arising from same set of facts, the appeals are taken up together for adjudication. 3. Shri C.H. Naniwadekar appearing on behalf of assessee submitted that the assessee had transferred capital asset on 11.05.2011. The assessee entered into agreement for purchase of flat on 16.06.2009. The actual possession of the flat was received by the assessee on 17.09.2010. The assessee claimed benefit of exemption u/s 54F of the Act in respect of long term capital gain arising from sale of shares invested in purchase of residential flat. The ld.A.R. submitted that the AO disallowed....
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....ore the date of transfer of capital gains were held to be not eligible for exemption u/s 54F of the Act. 4. The ld.A.R. submitted that the date of purchase of residential house/flat has to be reckoned from the date when entire consideration is paid and title of the property is transferred and possession of flat is handed over. In support of his submissions, the ld.A.R. placed reliance on the decision of Hon'ble Bombay High Court in the case of CIT Vs. Smt. Beena K. Jain reported as 217 ITR 363 and the decision of Mumbai Bench of the Tribunal in the case of Bastimal K. Jain Vs. ITO in ITA No.2896/Mum/2014 for A.Y. 2010-11 decided on 08.06.2016. The ld.A.R. submitted that the Department in its appeal has assailed the order of CIT(A) in g....
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.... exemption u/s 54F in respect of residential flat / house for which the assessee has entered into an agreement for purchase more than one year before the date of transfer of capital asset ? The dates qua, transfer of capital asset, execution of agreement for purchase of residential flat and possession of the flat are not in dispute. 7. The contention of the assessee is that since final consideration was paid and the possession of flat was received within a period of one year prior to the date of transfer of capital asset, the same should be considered as the date of purchase. Whereas, the stand of Department is that the date of execution of agreement for purchase of flat should be considered as the date of purchase. 8. The ld.A.R. has dr....
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....Therefore, taking into consideration facts of the case, the date of possession of flat is the date of actual purchase for the purpose of claiming exemption u/s 54F of the Act. 9. We find that similar issue had come up before the Hon'ble Bombay High Court in the case of CIT Vs. Smt. Beena K. Jain (supra). The Hon'ble High Court in the appeal by Department, upholding the order of Tribunal and allowed the benefit of exemption u/s 54F to the assessee. The substantial question for consideration before the Hon'ble High Court was : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in allowing exemption of Rs. 11,04,423/- under section 54F of the Income Tax Act, 1961, considering the date of possession....