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2020 (2) TMI 1626 - AT - Income TaxRevision u/s 263 - claim of deduction under Sec. 54 - claim of the assessee of being the “owner‟ of the mentioned property on the basis of the letter of allotment was absolutely incorrect - letter of allotment, dated 20.02.2010 did not vest any right with the assessee to acquire the aforesaid property, but only created an interest to acquire the same, and that too as per the terms and conditions as would be laid down in the “agreement to purchase‟ the said property - HELD THAT:- In compliance to the query so raised by the A.O, the assessee had vide his reply submitted before him that he had booked the aforesaid flats in February, 2010. Accordingly, the assessee substantiating his claim for deduction under Sec. 54 had furnished with the A.O the complete details as regards the mode and manner of acquisition of the property under consideration on the basis of the allotment letter, that was issued to him by the builder i.e M/s Oberoi Realty Limited on 20.02.2010. Also, documents supporting the aforesaid fact were also furnished alongwith the reply with the A.O y viz. (i). copies of the allotment letters; (ii). copies of the receipts issued by the builder i.e M/s Oberoi Realty Limited for the payments which were made by the assessee towards purchase consideration (in instalments) of the aforesaid property; and (iii). copy of the bank account of the assessee evidencing the making of the aforesaid payments by the assessee to the builder over the years. We find that the A.O after raising specific queries as regards the basis for treating the aforesaid property as a long term capital asset, and claiming of deduction under Sec. 54 of the Act by the assessee, had only after necessary deliberations accepted the claim of the assessee. Accordingly, we are of a strong conviction that the A.O only after making necessary verifications as regards the entitlement of the assessee towards claim of deduction under Sec. 54 of the Act, had accepted the same. As such, the observation of the Pr. CIT in the “SCN‟, dated 23/03/2018 that the A.O had failed to make enquiries regarding the purchase and sale of the properties is misconceived, and is liable to be rejected. The view taken by the A.O that the period of holding of the aforesaid property viz. Flat Nos. 705 & 706, 7th Floor, at Oberoi Exquisite, Goregaon (East), Mumbai, was to be calculated on the basis of the allotment letter that was issued to the assessee by the builder i.e M/s Oberoi Realty Limited on 20.02.2010, can safely be held to be a possible and a plausible view that was found to be in conformity with the view taken by the jurisdictional Tribunal and also that of the non-jurisdictional High Court, on the date on which the assessment was framed by him. Accordingly, we are of the considered view, that the aforesaid conscious and a possible view arrived at by the A.O, could not have been dislodged by the Pr. CIT in exercise of her revisional jurisdiction under Sec. 263 - Appeal of assessee allowed.
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