TaxTMI 
TaxTMI 
2026 (7) TMI 1074
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....in short Ld. Commissioner] u/s. 250 of the Income Tax Act, 1961, [in short 'the Act'] for the A.Y. 2015 -16. 2. In the instant case, the Assessee had purchased a flat in Vinayak Heights, Mumbai, on dated 14.12.2011, and sold the same on dated 19.12.2014 and consequently earned long-term capital gain of Rs. 2,30,81,246/- and claimed the said amount being exempt u/s. 54 of the Act, by filing his return of income for the Assessment Year under consideration on dated 21.08.2015, declaring total income at Rs. 99,78,020/-. The Assessee in fact claimed the deduction u/s. 54 of the Act, in lieu of a residential property consisting of two adjoining flats (being Nos. B-5202 and B-5203) situated at Trump Tower, having been purchased on dated 31.10.2....
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.... booked on 31.10.2014 before the sale of capital asset on 19.12.2014 and therefore the Assessee has not satisfied the primary conditions of section 54 of the Act, ultimately held the claim of the Assessee, as not acceptable. The Assessing Officer ultimately disallowed the amount of Rs. 2,30,81,246/-, which was claimed by the Assessee u/s. 54 of the Act, being exempt and added to the total income of the Assessee. 6. The Assessee being aggrieved challenged the said addition/disallowance by filing First Appeal before the Ld. Commissioner, however of no avail, as the Ld. Commissioner affirmed the aforesaid addition/disallowance by holding that the Assessee did not satisfy the conditions of section 54 and therefore the Assessing Officer was j....
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....r claiming the benefit u/s. 54 of the Act." 10. We have heard the parties and perused the relevant material available on record. It is not in controversy in this case that the Assessee within one year prior to the date of selling the property (old), on which the capital gain has been earned, has purchased new property. The only controversy as cropped up, relates to the date of possession of the new property purchased. The authorities below have emphasized that because the Assessee was supposed to purchase a property and/or construct within the time period as provided in law but in the agreement for sale, the proposed date of possession of the property newly purchased, on which capital gain has been shown as exempt is 31.12.2018. 11. W....
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....peal of the Revenue and eventually accepted the finding of the Tribunal that 54F of the Act that if the Assessee has invested the money in construction of residential house, merely because the construction was not completed in all respects and it was not in fit condition to be occupied within the period, as prescribed u/s. 54F of the Act. The essence of the provision is whether the assessee, who received capital gains has invested in its residential house. "Once it is demonstrated that the consideration received on transfer, has been invested either in purchasing residential house or in construction of residential house, even though the transactions are not complete in all respects, are required under the law, that would not disentitle the ....
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....The aforesaid sub-section requires the assessee to deposit unspent amount not utilized by the assessee for purchase or construction of a new asset before the date of furnishing of return, in a specified account. It further states that the amount, i already utilized for purchase or construction of the new asset with the amount so deposited will be deemed to be cost of a new asset subject to the proviso. The word 'purchase' is used in sub-section (2) and indicates that the said word is not restricted or confined to registered sale deed or even possession but has a wider connotation. The proviso supports the aforesaid interpretation and stipulates that the amount deposited but not utilized wholly or partly for purchase or construction ....