TaxTMI 
TaxTMI 
2024 (4) TMI 1419
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....er of Income Tax, CIT(A)-57, Mumbai (hereinafter referred to as "CIT(A)-57") erred in rejecting the exemption claimed by the Appellant under section 54 of the Act by stating that L&T Crescent Bay property was purchased from the builder for which the payment made on October 18, 2012 would be treated as transfer date under the provision of Section 54 of the Act and the same should be construed as purchase of property instead of construction. 2. The learned CIT(A)-57 also erred in appreciating the fact that dispute was not regarding whether the date of allotment or date of registration of purchase should be taken as the date of purchase, but it was regarding the investment was made for under construction property and not for purchase ....
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....year 2016-17 at Rs. 7,73,800/- was filed on 02.08.2016. The return was subject to scrutiny assessment and notice u/s 143(2) of the Act was issued on 03.07.2017. During the course of assessment the assessing officer noticed that assessee had sold a residential house and claimed exemption from capital gain tax u/s 54 of the Act. The assessing officer further noticed that assessee has made an agreement for purchase of new house in F.Y. 2012-13 and paid earnest money. The assessing officer was of the view that for the claim of deduction u/s 54 of the Act, the assessee has to purchase residential house within a period of one year before or two years after the transfer took place. The assessing officer further stated that assessee has made agreem....
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....IT v. Smt. Bharati C. Kothari (2000) 244 ITR 352 V. CIT v. H.K. Kapoor [1998] 234 ITR 753 (AII.) Asstt. VI. CIT v. Subhash Sevaram Bhavnani [2012] 23 taxmann.com 94 (Ahm. Tri.) The ld. Counsel also contended that the date of construction of the property was relevant not the date of commencement of the property in the case of the assessee. 5. On the other hand, the ld. D.R contended that newly acquired property was allotted to the assessee on 18.12.2012 and the said date was rightly treated by the AO as transfer date under the provision of Sec. 54 of the Act. 6. Heard both the sides and perused the material on record. During the year under consideration the assessee has sold two residential house properties on 01.0....
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....onstruction and not purchase of property for claiming relief u/s 54 of the Act. In this case it is also held that construction could start before the date of sale of earlier property, but it should be completed within three years from the date to be eligible for deduction u/s 54 of the Act. In that case also the assessee had earlier booked a flat at Elegant Tower which was under construction and the payment to the builder was made to the builder much earlier to the date of transfer of old flat. We have also considered the decision of Hon'ble High Court of Karnataka in the case of CIT Vs. J.R. Subramanya Bhat (1987) 165 ITR 571 (Kar.) wherein it is held that the date of the commencement of construction of the new building was immaterial. On ....