TaxTMI 
TaxTMI 
2026 (3) TMI 1224
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....25. The impugned Order emanated from the order of the Ld. Assistant Commissioner of the Income Tax, Circle 25(1), Mumbai, order passed u/s. 143(3) of the Act, date of the order 16/12/2019. 2. Brief facts of the case are that the assessee filed the return of income declaring a total income of Rs. 2,03,91,960/-, which was processed under section 143(1) of the Act. Subsequently, the case was selected for scrutiny. During the course of the assessment proceedings, the Learned Assessing Officer (Ld. AO) observed that the assessee had sold a flat situated at "Love Dale" for a consideration of Rs. 4.61 crores on 26.04.2016, which was duly registered on 26.06.2016. On the other hand, the assessee claimed deduction in respect of the purchase of a ....
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....nder construction flat. 28-04-2015 2. Date of Registration of purchase agreement 28-04-2015 3. Date of possession and letter of date of possession. 09-11-2015 Payment Schedule Society Maintenance Vat and Service Tax. Purchased Flat - Jeevan Sathi Sr. No Cheque No. Cheque Date Receipt Amount 1 000021 25-09-2014 25-09-2014 11,00,000.00 2 000023 02-10-2014 02-10-2014 59,00,000.00 3 000030 30-10-2014 31-10-2024 25,00,000.00 4 000032 14-11-2014 14-11-2014 1,00,00,000.00 5 000040 08-03-2015 22-03-2015 50,00,000.00 6 946771 12-05-2015 12-05-2015 4,00,00,000.00 7 000078 26-08-2015 28-08-2015 ....
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....ssion was 26.04.2016, upon receipt of the full consideration for the said property. With regard to the purchase of the new property, the Ld. AR contended that Flat No. 1001 in the building known as "Jeevan Sathi" was duly acquired by the assessee, and the purchase agreement is placed on record at APB pages 39 to 91. The Ld. AR further submitted that the possession of the said flat was handed over to the assessee on 09.11.2015, as evidenced by the possession letter issued by the developer, "Kabra Estate and Investment Consultants." It was also brought to our notice that the "Occupation Certificate" for the said building was issued by the Executive Engineer (Building Proposal), W.S. (K Ward), on 09.11.2015. In view of the above facts, the Ld.....
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....56(2) of the Act for raising the following question : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in allowing exemption of Rs. 11,04,423 under section 54F of the Income-tax Act, 1961 considering the date of possession of the new residential premises instead of date of sale agreement and date of registration ?" 2. Under section 54F in the case of an assessee if any capital gain arises from the transfer of any long-term capital asset, not being a residential house and the assessee has, within a period of one year before or two years after the date of which the transfer took place purchased a residential house, the capital gain shall be dealt with as provided in that section. As per the....
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....ITAT, Mumbai in the case of Bastimal K. Jain vs. ITO reported in [2016] 76 taxmann.com 368 (Mumbai - Trib.), wherein the Tribunal held that for the purpose of claiming deduction under section 54 of the Act, the relevant date is the date on which possession of the flat is handed over by the builder to the assessee, and not the date of registration of the flat. In the said case, relating to AY 2010-11, the Tribunal observed that where the assessee claims deduction under section 54 in respect of capital gains arising from the sale of a residential property, the date of acquisition of the new residential property is to be reckoned from the date of possession of the flat by the builder, and not from the date of execution or registration of the p....
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....rchase of the new residential property, it is evident from the record that the agreement for Flat No. 1001 in the building known as "Jeevan Sathi" was duly registered on 28.04.2015, while the possession of the flat was handed over by the promoter/developer on 09.11.2015. We further note that the Occupation Certificate was also issued by the Municipal Authority on 09.11.2015, which substantiates the fact that the property was ready for occupation and possession was legitimately handed over to the assessee on the said date. In our considered view, the date of registration of the agreement cannot be regarded as the sole or determinative factor for establishing the acquisition of the property. The relevant and material date is the date of actua....