TMI Blog2017 (6) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... .2012 when the assessee entered in to an agreement for sale and handed over the physical possession. If the transfer of property took place on 09.04.2012, the payments were made on 23.04.02012 and 05.05.2012 are after the sale of the property. Even otherwise Section 54 clearly says that if the assessee, within a period of one year before or two years after the date on which the transaction took place, purchased or within a period of three years after that date, constructed a residential house in India, then the assessee is eligible for deduction under Section 54 of the Act. In this case, the investment was admittedly made one year before the date of sale of property. In view of language employed by Parliament in Section 54 of the Act, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 06.06.2012. The Ld.counsel further submitted that there was agreement for sale executed on 09.04.2012. As per this agreement, the physical possession of vacant flat was handed over to the purchaser. Therefore, under Section 2(47) of the Act, there was a transfer of property even though the registration of the document is essential pre-condition for transfer of immovable property the value of which is exceeding ₹ 100/- under the common law. The assessee has, in fact, invested on 23.04.2012 to the extent of ₹ 25,00,000/- and on 05.05.2012 another ₹ 25,00,000/- and a sum of ₹ 2,00,000/- was invested on 03.08.2013 in a new flat. The Ld.counsel submitted that the Assessing Officer, after taking into consideration of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 06.06.2012 and the investment was made before the date of registration of sale deed. Therefore, the Assessing Officer found that whatever investment made by the assessee in the construction of new property before the execution of sale deed cannot be allowed as deduction under Section 54 of the Act. Therefore, according to the Ld. D.R., the investment made by the assessee to the extent of ₹ 50,00,000/- cannot be allowed as deduction while computing taxable income under Section 54 of the Act. 6. We have considered the rival submissions on either side and perused the relevant material available on record. It is not in dispute that the assessee executed a registered sale deed on 06.06.2012 in respect of transfer of flat at BBC Spring F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the assessee executed registered sale deed on 06.06.2012, this Tribunal is of the considered opinion that there was a transfer of property within the meaning of Section 2(47) of the Act on 09.04.2012 when the assessee entered in to an agreement for sale and handed over the physical possession. If the transfer of property took place on 09.04.2012, the payments were made on 23.04.02012 and 05.05.2012 are after the sale of the property. 8. Even otherwise Section 54 of the Act clearly says that if the assessee, within a period of one year before or two years after the date on which the transaction took place, purchased or within a period of three years after that date, constructed a residential house in India, then the assessee is eligible ..... X X X X Extracts X X X X X X X X Extracts X X X X
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