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| The Tax Publishers2019 TaxPub(DT) 6455 (Bang-Trib) INCOME TAX ACT, 1961
Section 54F
Where consideration received on transfer of asset was invested by assessee for purchasing a new residential house, then merely because the registered deed was not executed and registered in favour of the assessee before the period stipulated, the assessee could not be denied the benefit of section 54F.
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Capital gains - Deduction under section 54F - Purchase of a new residential house - Execution of sale deed and possession being beyond stipulated period
Assessee claimed exemption under section 54F on account of investment made for purchase of a new residential house. AO denied the said exemption on the ground that the execution of sale deed and possession by the assessee was much beyond the stipulated period. Assessee contended that merely because the registered deed was not executed and registered in his favour before the period stipulated, he could not be denied the benefit of section 54F. Held: Once it is demonstrated that the consideration received on transfer has been invested either in purchasing a residential house or in construction of a residential house even though the transactions are not complete in all respects and as required under the law, that would not disentitle the assessee from claiming benefit under section 54F. In the subject case, it was not in dispute that assessee made investment for purchase of a residential house and only the registered deed was executed after more than 4 years and the possession was also taken after more than 4 years but that would not disentitle assessee from claiming deduction under section 54F.
Followed:CIT & Anr. v. Sambandham Uday Kumar (2012) 345 ITR 389 (Ker): 2012 TaxPub(DT) 1804 (Karn-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, BANGALORE BENCH
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