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2017 (6) TMI 442 - ITAT CHENNAIDisallowance of exemption claimed by the assessee under Section 54 - Held that:- Under the common law, for transfer of immovable property value of which is exceeding ₹ 100/-, a registered sale deed has to be executed. However, in view of the special provisions of Section 2(47) such a requirement under the common law, may not be applicable while interpreting Section 2(47) of the Act. Therefore, even though 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. 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 is not the requirement that the sale consideration has to be invested in purchase of property. It is immaterial whether the assessee invested the sale consideration in purchasing of new flat on receipt of the money after the date of sale or one year before the sale of property. In this case, the assessee invested the sale consideration one year before the sale of property, therefore, the assessee is eligible for deduction under Section 54 of the Act - Decided in favour of assessee.
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