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2019 (1) TMI 1130 - AT - Income TaxEntitlement to exemption u/s 54F - long term capital gain arising from sale of shares invested in purchase of residential flat - AO disallowed assessee’s claim of exemption on the pretext that the flat was purchased by the assessee more than one year prior to the date of transfer of capital asset - whether date of signing of the agreement cannot be said to be the date of purchase of residential house? - contention of the assessee is that since final consideration was paid and the possession of flat was received within a period of one year prior to the date of transfer of capital asset, the same should be considered as the date of purchase Held that:- In the instant case, full consideration has been paid by the assessee for purchase of residential flat within a period of one year before the date of transfer of capital asset. Thereafter, actual possession of the flat was delivered to assessee on 17.09.2010 i.e., within a period of one year prior to the date of transfer of capital asset. It is an un-rebutted fact that at the time of execution of agreement, the residential property was not in existence. Therefore, taking into consideration facts of the case, the date of possession of flat is the date of actual purchase for the purpose of claiming exemption u/s 54F of the Act. Thus in view of undisputed facts of the case and the decision rendered in the case of CIT Vs. Smt. Beena K. Jain (1993 (11) TMI 7 - BOMBAY HIGH COURT), we hold that the assessee is eligible for claiming exemption u/s 54F on the entire amount of capital gain utilized for purchase of residential property. Consequently, the appeal of the assessee is allowed
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