1991 (7) TMI 119

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....ety, Surat. The investment in the new those property was made as under: (i) Rs. 5,000 paid on 9th Nov., 1979 (ii) Rs. 69,999 paid on 23rd Nov., 1979 The said house property was purchased by the assessee for Rs. 69,999. The assessee claimed deduction under s. 54 of the IT Act in respect of capital gain. The ITO noticed that the registered sale deed in respect of the property in Ghanshyam Nagar Society was executed by the assessee's vendor on 9th March, 1981 which was beyond the time limit of one year prescribed under s. 54 of the Act. He therefore, rejected the assessee's claim for deduction under s. 54 of the Act. 3. The submission of the assessee before the Dy. CIT(A) was that he paid the entire purchase price of the new proper....

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....have purchased the property when he paid the entire price and obtained possession from the vendor. It was because of certain legal proceedings that execution of sale deed was delayed and in the circumstances of the case delay in execution of the sale deed would not be a bar for allowing deduction under s. 54 of the Act. Reliance was placed on the decision in CIT vs. Mrs. Shahzada Begum (1988) 73 CTR (AP) 229 : (1988) 173 ITR 397 (AP) Attention was also invited by the learned counsel for the assessee to the fact that income from this house property has been taxed under s. 22 of the Act in the assessment order. 5. I have considered the rival submissions and facts on record. Sec. 54 of the Act so far as relevant for the asst. yr. in questio....

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....ssessee has paid full price of the new residential house to the vendor and has also obtained possession thereof before expiry of period mentioned in s. 54(1) of the Act. He has acquired dominion over the new residential house before expiry of that period. The vendor was ready and willing to execute the sale deed before the expiry of the said period. However, delay occurred because of the fact that sanction of certain authority was necessary before execution of sale deed. Delay in execution of sale deed on account of such technical reason would not mean that the assessee had not purchased the property in question before the expiry of the period. The said delay had not occurred on account of any default made by the assessee. When the assessee....