2025 (9) TMI 27

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....ssessment order passed u/s. 143(3) of the Act which is illegal and bad in law. 2. The CIT(A) has erred in confirming the disallowance of claim of exemption of Rs. 91,33,892/- made u/s. 54 of the Act" 3. Brief facts of the case are that the assessee filed return declaring total income of Rs. 4,03,770/-. The case was selected for scrutiny and statutory notices were issued. The assessee had claimed Long Term Capital Gains (LTCG) of Rs. 91,33,892/- on sale of old flat which was claimed as exempt u/s. 54 of the Income Tax Act (the Act). The assessee had sold the old flat on 21.07.2011 for a total consideration of Rs. 2,85,00,000/- of which the assessee was a joint holder along with her husband. Acc0rdingly, the assessee's share of profit on s....

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....,000/-) 4. 05.04.2011 Final payment for purchase of new flat (Rs.5,00,351/-) 5. 06.04.2011 Possession of new flat 6. 21.07.2011 Sale of Old flat (Gain of which is being claimed as exempt u/s. 54 of the Act) 4.2. It was further explained that even though the agreement for purchase of flat was entered into on 28.08.2009, the assessee acquired possession of the new flat only on 06.04.2011. He, therefore, argued that the date of last payment and possession is relevant for determining the date of purchase of new flat for computing exemption u/s. 54 of the Act. Ld. AR also, submitted that the final payment of Rs. 5,00,351/- was made only on 05.04.2011 after which the possession was handed over to the assessee on 06.04.2011. He, there....

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....r residential house either before one year of the transfer or even two years after the transfer, the intention of the Legislature is to give him relief in the matter of payment of tax on the long-term capital gain. If a person, who gets some excess amount upon transfer of his old residential premises and thereafter purchases or constructs a new premises within the time stipulated under section 54 of the Act, the Legislature does not want him to be burdened with tax on the long term capital gain and, therefore, relief has been given to him in respect of paying income-tax on the long-term capital gain. The intention of the Legislature or the purpose with which the said provision has been incorporated in the Act, is also very clear that the as....