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2023 (6) TMI 167 - AT - Income TaxExemption u/s 54 - LTCG - Assessee bought new house beyond period of three years - as per AO assessee made booking of new residential house as after due date of filing return of income and execution of sale deed of new house took place not within three years from the date of sale - HELD THAT:- Assessee has paid Rs. 28.00 lacs within three years form the date of sale of old house. The date and payment on various dates as recorded is not disputed by revenue. Such details of payment were furnished before lower authorities. Only the sale deed of new house was executed 18/12/2015. As decided in a recent decision in Harminder Kaur [2021 (2) TMI 580 - ITAT DELHI] while following the earlier decisions of Jagruti Aggarwal [2011 (10) TMI 279 - PUNJAB AND HARYANA HIGH COURT] held that where the assessee sold residential house and utilized the sale consideration for booking flat in housing project which was yet to be constructed, since assessee had made entire payment toward investment in new flat within period of three years from the date of transfer of original asset, amount was to be treated as invested in purchase / construction of new residential property and assessee is to be allowed exemption u/s 54. Also in Dr Dharmista Vs ITO [2022 (10) TMI 544 - ITAT MUMBAI] held that exemption u/s 54 should be allowed if the amount is invested on or before due date of filing return of income under section 139(4). Thus, direct AO to allow exemption u/s 54 to the assessee. Assessee appeal is allowed.
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