TaxTMI 
TaxTMI 
2021 (7) TMI 914
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....d by a bench of this Court on the following substantial question of law: "Whether the Income Tax Appellate Tribunal is justified in law in confirming the order passed by the first Appellate Authority and Assessing Officer that the appellant is not entitled to exemption of Rs. 88,98,970/- under Section 54F of the Act even though all the mandatory requirements and conditions were fulfilled on the facts and circumstances of the case?" 2. Facts leading to filing of this appeal briefly stated are that the assessee is an individual. The assessee was a shareholder in two companies viz., Pearl Insulation Pvt. Ltd. And M/s Pearl Metal Products Pvt. Ltd. The assessee had transferred the shares held by him in the aforesaid companies on 21.08....
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....lat and made payments to the builder. The aforesaid allotment of the flat was transferred in favour of the assessee on 18.03.2009 and the flat was registered in the name of the assessee on 28.03.2011 i.e., prior to three years from the date of transfer of shares i.e., 21.08.2008. It is also submitted that in order to claim exemption under Section 54F of the Act, the assessee had to construct a residential house within three years from the date of transfer of original asset. It is also urged that case of the assessee was a case of construction of the property and not mere purchase. In support of aforesaid submission, reliance has been placed on Circulars dated 15.10.1986 and 16.12.1993 issued by Central Board of Directors. It is also urged t....
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....f the assessee under Section 54F of the Act. It is also urged that exemption clause should be interpreted strictly. In support of aforesaid submissions, reference has been made to 'COMMISSIONER OF CUTOMS (IMPORT), MUMBAI VS. DILIP KUMAR & CO', (2018) 68 GST 39, 'JAI NARAYAN VS. INCOME TAX OFFICER', 306 ITR 335 (P & H), 'PRAKASH VS. INCOME TAX OFFICER & ORS', 312 ITR 40 (MUMBAI) and 'VIPIN MALIK (HUF) VS. COMMISSIONER OF INCOME TAX', (2009) 330 ITR 0309 (DEL). 6. We have considered the rival submissions and have carefully perused the record. Before proceeding further, it is apposite to take note of relevant extract of Section 54F of the Act, which reads as under: Capital gain on transfer of certain capital a....
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....efit under Section 54F of the Act. 8. In the instant case, the daughter of the assessee had entered into an agreement for purchase of a flat on 30.12.2006 with M/s Brigade Enterprises. On 21.08.2008, the assessee transferred his shares in the company on which Long Term Capital Gain was offered. Thereafter, under an agreement, on 18.03.2009, the flat was transferred in the name of the assessee and thereafter a registered sale deed was executed in favour of the assessee on 28.03.2011. The assessee had acquired the residential property viz., the flat under an agreement to sell in respect of undivided land and an agreement to build, thus, the instant case was a case of construction of a residential house. The sale deed was executed in favour o....