TMI Blog2014 (1) TMI 1491X X X X Extracts X X X X X X X X Extracts X X X X ..... 54 to the assessee. The assessee made substantial investment for acquisition of flat at Bangalore the total cost of which was Rs.65 lacs and the assessee paid Rs.60 lacs on 6.9.2008 within 8 months from the date of sale of the old asset before the due date of filing of return of income - The new asset (Flat at Bangalore) was made available well before December, 2009 which was sold through a registered sale deed - The assessee cannot be denied benefit u/s 54F - Decided against Revenue. - ITA No. 63/2012 - - - Dated:- 20-1-2014 - Shantanu Kemkar And M. C. Garg,JJ. For the Appellant : Shri RL Jain, learned Senior Counsel with Ms. Veena Mandlik, learned counsel ORDER Heard. This appeal under section 260-A of the Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... new asset was beyond the prescribed limit of two years. 2. The learned Tribunal has taken note all these facts including the law applicable. Relevant observation made by the Tribunal are incorporated herein for the sake of reference:- 3. We have considered the rival submissions and perused the material available on file. Brief facts of the case are that the assessee declared income of Rs.5,08,150/- in its return filed on 29.09.2008. The assessee sold plot No.124, Shanti Niketan, Indore, for Rs.73,36,000/-. The assessee after deducting the cost of acquisition claimed the capital gains at Rs.69,46,182/- out of which the assessee claimed exemption under section 54 on account of purchase of flat in Mascot Residency, Bangalore for Rs.65 lacs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income applicable in the case of the appellant. Further, still, definite and convincing material has been brought on record to the effect that the building in which the flat was acquired by the appellant was complete and made habitable well before December, 2009, whereby 14 flats were actually sold by the builder through Registered Deeds. The appellant further filed certificate from Govt. agency i.e. Bangalore Municipal Corporation in respect of the said flat and has also given electricity consumption bills for the period from January, 2008 to May 2008. Thus merely because the sale agreement was registered beyond the period of two years it would be totally unjust and uncalled for to deny exemption under section 54 F of the Act to the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 lacks was paid by the appellant after that expiry of period of two years from the sale of 'old asset', the AO is directed to restrict the claim of exemption to the extent of Rs.60 lacs and the denial of exemption under section 54 of the Act is restricted to Rs.5 lacs only. 3. After taken note all these facts and also provision contained under section 54 F of the Income Tax Act, made the following observation:- 4. If the conclusion drawn in the impugned order, facts narrated before us and the provisions of the Act are kept in juxtaposition, we find that the assessee made substantial investment for acquisition of flat at Bangalore the total cost of which was rs.65 lacs and the assessee paid Rs.60 lacs on 6.9.2008 within 8 months from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the construction of the house, it amounted to sufficient steps being taken, thus satisfying the requirements of section 54. The Tribunal was not justified in denying exemption under section 54 to the assessee. 4.1. If the provisions of the Act are analysed for the purpose of attracting the provisions of section 54 of the Act, it is not necessary that the assessee should become the owner of the property so purchased. The word 'purchase' occurring in section 54(1) has to be given its common meaning viz. Buy for a price or equivalent to a price by payment in kind or adjustment towards a debt or for other monetary consideration. Therefore, for the purpose of applicability of section 54, registration of the document is not imperative. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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