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2023 (3) TMI 1222 - ITAT PUNEDenying deduction u/s 54 - capital gains on sale of a residential property - As per AO property purchased is beyond one year preceding the year of sale, the assessee is not eligible for deduction - HELD THAT:- As new property shall be deemed to have been acquired only when it is ready, full consideration has been paid and the possession is received by the assessee by the assessee. Substantial necessities are crucial for determining the issue for claim of deduction u/s 54 of the Act. Admittedly, in this case what the department is harping upon is merely the agreement dated 21-12-2016 when the building itself was not constructed and the assessee has only acquired his right to get a flat in the said building. When actually therefore, can it be said that the new property was purchased? It is only when the assessee received the possession through letter of possession on 24-12-2018. This is when all the three ingredients as enumerated in the decision of Hon’ble Jurisdictional High Court [1993 (11) TMI 7 - BOMBAY HIGH COURT] for claiming deduction u/s 54 had been complied with by the assessee. Thus, in view of the undisputed facts of the case and the decision rendered in the case of Smt. Beena K. Jain (supra) we hold that the assessee is eligible for claiming deduction u/s 54 of the Act. Consequently all the grounds of appeal of the assessee are allowed.
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