TaxTMI 
TaxTMI 
2026 (4) TMI 556
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.... of the case and in law, ld. CIT(A) erred in confirming the action of ld.AO in not allowing claim of deduction u/s 54 of the Act for the reasons mentioned in the impugned order or otherwise. 2. On the facts and circumstance of the case and in law, ld. CIT(A) erred in confirming the action of ld.AO in disallowing a sum of Rs. 11,51,904/- being long term capital gains as claimed by the appellant u/s 54 of the Act in the Return of Income, for the reasons mentioned in the impugned order or otherwise. 2. Briefly stated facts of the case are that the assessee is an individual. In the return of income filed u/s 139(1) of the Act on 25.03.2019, the assessee declared total income at Rs. 8,02,953/- comprising of income from house property....
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....the Assessing Officer pertains to the absence of a registered sale deed and the alleged doubt regarding the genuineness of the allotment. However, it is a settled legal position that registration of the conveyance deed is not a sine qua non for claiming deduction under section 54, so long as the assessee has demonstrated substantial compliance by way of investment and acquisition of rights in the property. 4.2 Further, the assessee also submitted that due to pending litigation, the property could not be registered. The assessee filed copy of the relevant court orders demonstrating the pending litigation. The Ld. CIT(A) though admitted that since the property could not be registered, the disallowance made by the AO on this ground was inco....
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....en made prior to 01.04.2016. The original asset leading to capital gain during the year was undisputedly sold on 23.01.2018. As per the provisions of section 54, however, deduction under this section is available only if the new asset is purchased one year before or .... after the transfer (of original asset) took place. Therefore, any purchase made prior to 24.01.2017 cannot be taken for claim of exemption u/s 54 of the Act. Keeping the above in mind, the addition/ disallowance made by the AO is sustained, though with the above findings." 4.3 Before us, the Ld. counsel for the assessee submitted that the booking cum allotment letter issued by the Super Construction Company demonstrated that property was purchased within the per....
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.... with substantial payment, confers enforceable rights and constitutes "purchase" for the purposes of section 54. The emphasis is on the substance of the transaction rather than its form. 4.8 In the present case, the material on record clearly establishes that the assessee had entered into an arrangement for acquisition of a residential property and had made substantial payments. Though the Assessing Officer has raised issue of the booking/allotment letter issued by the partnership firm, but he has not brought any evidence on record which could hold that said allotment letter was not genuine. In absence of any such evidences merely on the basis of the presumption it could not be held that such booking letter was not genuine. Thus, the Rev....