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2021 (1) TMI 287 - AT - Income TaxDenial of exemption under Section 54F - agreement of sale was not registered - HELD THAT:- Agreement for sale of flats between the M/s Siddi Constructions and the assessee is enclosed. A.O. has not disputed the agreement of sale entered by the assessee with M/s Siddi Constructions but he only alleged that the document is not registered and accept the facts that the M/s Siddhi Construction has delivered and confirmed that the assessee has purchased 12 flats as per the agreement of sale in 3 floors and the registration formalities have to be completed. Under the provisions of Sec. 54F of the Act, the residential property should be purchased within a specified time for claim of exemption and the A.O. has not disputed. There is no mandatory requirement of registration at the time of entering into agreement. Therefore, we are of the view, that though residential property is not registered but the assessee was able to prove the possession and confirmed by the builder, the exemption cannot be denied on this ground. Assessee is entitled for exemption under Section 54F of the Act for more than one residential flat in the same complex - The amendment to Section 54F of the Act in Finance Act, 2014 is effective from Assessment Year 2015-16. We also rely on the observations of CIT Vs. V R Karpagam [2014 (8) TMI 899 - MADRAS HIGH COURT] where it was held that the Amendment to Section 54F of the Act being Para Materia to the Section 54 of the Act with regard to substitution of “Residential Unit by Finance Act No.2, 2014” was operative only effective w.e.f. 1.4.2015 whereby exemption for more than one unit /flat (residential house) is to be withdrawn. However, prior to the aforesaid amendment a residential house would include multiple flats, residential units in the same apartment building. Thus we are of the substantive opinion that the assessee is entitled for residential flats exemption under Section 54F - Decided in favour of assessee.
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