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2015 (3) TMI 485 - AT - Income TaxDisallowance of claim of Exemption u/s.54F - LTCG on Transfer of shares - purchase agreement was entered into on 30.12.2006; more than one year before the date of sale of the long term capital asset and was registered on 28.3.2011, which is more than two years after the date of sale of the long term capital asset, the Assessing Officer denied the assessee's claim for exemption - Held that:- What has transpired is that an amount of ₹ 67,15,910 has been paid to the builder before one year from the date of sale and after two years from the date of sale of long term capital asset for acquiring a flat in the name of the daughter and this has with the time frame laid down in section 54F. It is incorrect to say that the appellant has obtained a substantial domain over the new residential flat as the flat has been booked in the name of the appellant’s daughter. Even what the appellant’s daughter had obtained by making such payment is only an enforceable right. This does not tantamount to acquisition of a new residential house as contemplated in 54F. As rightly observed by the learned CIT(A), this is not a case where only the property has not been registered within the time specified under Section 54F of the Act. We also find, from an appreciation of the facts on record, that the assessee's claim that he has obtained a substantial claim over the residential flat, as it has been booked in his daughter’s name is not correct, as the assessee does not have even an enforceable right in the matter vis-a-vis Brigade Enterprises Ltd. The provisions of law in this regard are very clear, in that the investment in the purchase / acquisition of a new property should necessarily be in the name of the assessee and not in the name of another person and the subsequent intimation of change of the booking of the flat in the name of the assessee by a mere letter of Brigade Enterprises Ltd., does not fulfill the requirements of the provisions of section 54F of the Act. See Jai Narayan V ITO [2007 (8) TMI 295 - PUNJAB AND HARYANA HIGH COURT] - the authorities below have correctly rejected the assessee's claim for exemption of ₹ 88,98,970 under Section 54F of the Act. - Decided against assessee.
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