TaxTMI 
TaxTMI 
2025 (6) TMI 1546
X X X X Extracts X X X X
X X X X Extracts X X X X
....ate the documentary evidence furnished before him (confirmation dated 01/06/2012) in proper perspective. Without prejudice to the above: 3. The Hon'ble CIT(A) has failed to appreciate that once M/s Delta Ventures (appellant's debtor) and Shri Jaferali Jalal Momin (appellant's creditor) having agreed to adjust the account among themselves and having discharged appellant of the obligation, it amounts to appellant having invested the amount in purchase of property so as to fulfil the condition of Sec 54F of the I.T. Act. 4. The Hon'ble CIT(A) has failed to appreciate that appellant has received the possession of the flat, which further conclusively proves that appellant had discharged his obligation and as such is entitled/ eligible for deduction u/s 54 F of the I.T. Act. 5. The Hon'ble CIT(A) has failed to appreciate / interpret the provisions of sec. 54F of the IT Act in proper perspective." 3. The solitary grievance of the assessee is against the restriction of deduction claimed under section 54F of the Act. 4. The brief facts of the case pertaining to this issue, as emanating from the record, are: The assessee is an individ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the remaining long-term capital gain of Rs. 25,59,270/- be not added to the total income of the assessee as the later amount was actually paid by M/s. Delta Venture to the seller of the residential flat on 30.03.2015. In response, the assessee furnished a copy of the confirmation letter from M/s. Delta Venture dated 01.06.2012, which was countersigned by the seller of the flat, submitting that M/s. Delta Venture has agreed to pay a sum of Rs. 26 lakh to the seller for the flat purchased by the assessee. The AO, vide order dated 13.09.2021 passed under section 143(3) read with section 254 read with section 144B of the Act, disagreed with the submissions of the assessee and held that out of the total compensation of Rs. 50,59,270/- payable by M/s. Delta Venture to the assessee, only the sum of Rs. 83,229/- was paid to the assessee during the previous year 2011-12, and the remaining amount of Rs. 49,76,041/- was credited to the amount of assessee by M/s. Delta Venture. The AO further held that it is out of this credited amount that M/s. Delta Venture agreed to pay a sum of Rs. 26 lakh to the seller of the flat, which was actually paid only on 30.03.2015, i.e., beyond the time period p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....entioned basic facts of the present case. 9. The assessee claimed deduction under section 54F of the Act on the basis that the long-term capital gain earned from the transfer of tenancy/possessory rights was invested for the purchase of a residential flat from Mr. Jaferali Jalal Momin. During the second round of assessment proceedings, the assessee was asked to prove the eligibility of the claim of deduction under section 54F of the Act by producing the documentary evidence of payments made towards the purchase of the aforesaid residential flat. In response, the assessee submitted that he paid a sum of Rs. 10 lakh on 09.03.2012 through cheque and another sum of Rs. 15 lakh on 10.3.3.2012 through cheque. The assessee further submitted that the balance amount of Rs. 26 lakh was paid by M/s. Delta Venture to Mr. Jaferali Jalal Momin. 10. Insofar as the payment of Rs. 25 lakh paid by the assessee through cheque, the lower authorities accepted the contention of the assessee since the payment was made within a period of one year from the date of transfer of the original asset (i.e., transfer of tenancy/possessory rights). However, as regards the payment of Rs. 26 lakh, which the as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t and peaceful possession of the said flat to the assessee along with original share certificate upon execution of the agreement of sale with the assessee. 13. At this stage, it is pertinent to note that the AO, in the assessment order, specifically noted that as a compensation to the assessee for surrender of the tenancy/possessory rights, M/s. Delta Venture only paid Rs. 83,229/- to the assessee out of the total compensation of Rs. 50,59,270/-, during the previous year 2011-12, and the remaining amount of Rs. 49,76,041/- was credited to the accounts of the assessee by M/s. Delta Venture. Thus, from the facts recorded in the assessment order, it cannot be disputed that M/s. Delta Venture was required to pay a further sum of Rs. 49,76,041/- to the assessee, and out of the said amount, M/s. Delta Venture agreed to pay a sum of Rs. 26 lakh to the seller of the flat on 01.06.2012. Further, it is pertinent to note that even though the seller of the flat actually received the sum of Rs. 26 lakh from M/s. Delta Venture only on 30.03.2015, however, no material has been brought on record which proves that the seller has ever disputed the sale transaction despite receipt of late payment.....