2025 (5) TMI 21

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....Y) 2017-18, which in turn arises out of assessment order passed by Assessing Officer u/s 143(3) of the Act dated 24.12.2019. Grounds of appeal raised by the assessee are as under: "1. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A), NFAC has erred in confirming the action of Assessing Officer in disallowing deduction of Rs. 1,59,40,044/-/ claimed u/s 54F of the I.T. Act, 1961. 2. It is, therefore prayed that the above addition made by the Assessing Officer and confirmed by Commissioner of Income-tax-Appeals, may please be deleted. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal." 2. Facts of the ....

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.... with the assessee and he enjoy the rights of ownership. The CIT(A) observed that condition of Section 54F are not fulfilled because assessee entered into an agreement of sale, which is a promise for future transfer of property whereas sale deed is an actual transfer of property ownership. The sale agreement comes before the sale deed, which is executed and signed by the buyer and seller on non-judicial stamp paper. To execute a sale deed, the buyer needs to pay registration fee and stamp duty. In case of sale agreement, the title of the property remains with the property owner till a sale deed is executed and registered subsequently. A title of the property can only be transferred by a sale deed. In the instant case, the sale deed has not ....

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....se. The words used is "purchase" or "construct" and therefore, the assessee had to purchase the new residential house before one year or after two years from the date of transfer. It is an undisputed fact that the assessee has not registered the property at Haven Hills Housing Society and only agreement of sale has been executed. The Ld.Sr-DR for the Revenue submitted that the decisions relied upon by Ld. AR are distinguishable in facts. He is submitted that in the case of Sardarmal Kothari (supra), it was construction of house and not purchase of new house. In case of Shahajada Begam (supra) sale deed was subsequently registered; in case of Kristina Nathabhai Krichchan (supra), only permission of the court was pending because two of the co....

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....isions relied upon by the Ld. AR. The requirement of Section 54F is that the assessee should purchase any residential house within a period of one year before or two years after the date of transfer of the property or construct a new residential house within a period of three years after the date of transfer. The co-ordinate Benches of ITAT Rajkot, Jaipur and Ahmedabad cited supra decided the issue in favour of Revenue in absence of registered sale deed. In the present case, there is no dispute that the appellant has entered into an "Agreement of Sale with Possession" of the residential house, being a flat at Haven Hill Housing Society within time allowed in the Act. However, the property has not been registered. The Ld. AR submitted that t....