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2017 (9) TMI 1292 - AT - Income TaxExemption under section 54 and 54F denied - amount invested for the purchase of residential plot and deposits made under capital gain in the Bank - Held that:- When it is not in dispute that the assessee has paid an amount of ₹ 75,85,818/- which is 95% of the total sale consideration for purchase of the property to M/s. Unitech High-Tech Developer (Rs. 7,41,250/- on 20.1.2011 and ₹ 68,44,298/- on 23.3.2011) through banking channel and also deposited ₹ 25,00,000/- under capital gain the right in personam was created in favour of the assessee from the date of entering into an agreement dated 11.1.2011 in favour of the assessee. It does not matter if the registration of the sale deed has not been made in favour of the assessee because transfer of the property is to be taken from the date of agreement in favour of the assessee. Moreover the assessee has made frantic efforts to take the possession of the property from the developer by approaching Hon'ble High Court of Allahabad as well as National Consumer Disputes Redressal Commission. Hon'ble Delhi High Court in case cited as Balraj v. Commissioner of Income-Tax [2001 (12) TMI 51 - DELHI High Court] held that for the purpose of attracting the provisions of section 54 of the Income-tax Act, it is not necessary that the assessee should become the owner of the property as registration of the document was not imperative. So once the assessee has paid substantial amount to purchase the property within a period of one year he has become entitled for exemption u/s 54 of the Act. - Decided in favour of the assessee
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