TaxTMI 
TaxTMI 
2021 (5) TMI 337
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.... 1. "On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the assessee for deduction claimed u/s.54F of the Income Tax Act, 1961 of Rs. 2,38,30,244/- ." 2. "On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred by not considering the fact that the assessee has not fulfilled the criteria to avail the benefits to claim deduction u/s.54F of the Income Tax Act, 1961" 3. "On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has by not considering the fact that the assessee was not eligible to claim deduction u/s.54F of the Act as the assessee had advanced an amount of Rs. 1,00,00,000/-on 20.04.2012 for the purchase of ....
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....s of the view that the investment in question should have been made, in terms of the provisions of section 54F within one year before the sale of property or two years after sale of property. This condition, according to the Assessing Officer, was not satisfied, and, accordingly, deduction under section 54F was inadmissible. Accordingly, he disallowed the claim of 54F deduction of Rs. 2,38,30,244/-. Aggrieved assessee carried the matter in appeal before the learned CIT(A) who upheld the claim of the assessee, and observed as follows:- I have gone through the AO's order and the appellant's factual and legal submission. The fact of the case is that the appellant has sold five commercial properties and has invested the same in one res....
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....session. As per section 54F of the Income-tax Act, 1961, it provided that: "Subject to the provisions of sub-section (4), where, in the case of an assesses being an individual or a Hindu undivided family, the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assesses has, within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, one residential house in India (hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provi....
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....ch 2015. Even if either of the above dates are considered, the condition of purchase of new property within two years from date of transfer is satisfied. The AO has erred in considering the date of payment for determining allowability of deduction under section 54F. The relevant date should be date of actual purchase i.e. execution of agreement coupled with date of possession. The same falls within the statutorily prescribed time limit and hence, deduction is to be allowed under section 54F. Accordingly, on the basis of facts and legal decisions, this ground is Allowed. 4. The Assessing Officer is aggrieved of the relief so granted by the CIT(A) and is in appeal before us. 5. We have heard the rival contentions, perused the material o....
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....e Income-tax Act, 1961 considering the date of possession of the new residential premises instead of date of sale agreement and date of registration ?" 2. Under section 54F in the case of an assessee if any capital gain arises from the transfer of any long-term capital asset, not being a residential house and the assessee has, within a period of one year before or two years after the date of which the transfer took place purchased a residential house, the capital gain shall be dealt with as provided in that section. As per the section certain exemption has to be allowed in respect of the capital gains to be calculated as set out therein. The department contends that the assessee did not purchase the residential house either one yea....