TaxTMI 
TaxTMI 
2024 (7) TMI 505
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....of deduction claimed u/s. 54F of the Act at Rs. 1,95,76,997/- towards investment made in the acquisition of new house property out of the sale consideration received from the sale of capital assets. 3. Brief facts of the case are that during the year under consideration the assessee has sold four pieces of land for a total consideration of Rs. 1,97,00,000/- and claimed exemption u/s. 54F of the Act for the investment made in the acquisition of house property out of such sale consideration. The AO has disallowed the said deduction claimed by the assessee for the reason that the assessee has purchased residential house beyond the period of two years from the date on which the transfer took place and further by observing that the assessee t....
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....s one unit and paid the entire sale consideration within the stipulated time period and due to the reason that the builder has not given the physical possession of the said flats within a period of two years, it was not possible for him to get those flats registered, however, he has fulfilled all the conditions enumerated u/s. 54F of the Act in claiming the deduction such as payments were made within the prescribed time and the flats purchases were earmarked by the builder vide letter dated 05.01.2015. He further contended that though four flats were purchased, however, they were situated in a single floor of a building and are purchased as a single unit by the assessee as well as sold as one unit by the builder also, therefore, the same ca....
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....te area of each separate areas is marked by the builder. It is also a fact that all the flats are situated at one floor and were used as a single residential unit which fact cannot be denied by the lower authorities. These four flats were got registered through a single sale deed where they have been treated as one unit. The sale deed is placed at page book pages 11-35. The AO while disallowing the claim of the assessee observed that the registration of the flats were made in the year 2019 i.e. after four years from the sale, however, he has failed to appreciate the fact that the flats were allotted to the assessee in the year 2015 itself i.e. the year when the capital assets were sold by the assessee against which the deduction u/s. 54F of....
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....e control of the appellants, they could not execute the sale deed and the sale deed had been registered only on 24th Sept., 2004, after the suit filed by Shri Ranjeet Lal, challenging the validity of the Will, had been dismissed. In the light of the aforestated facts and in view of the definition of the term "transfer", one can come to a conclusion that some right in respect of the capital asset in question had been transferred in favour of the vendee and therefore, some right which the appellants had, in respect of the capital asset in question, had been extinguished because after execution of the agreement to sell it was not open to the appellants to sell the property to someone else in accordance with law. A right in personam had been cr....