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2020 (7) TMI 538 - AT - Income TaxExemption u/s 54 - Long term capital gain arising on sale of residential flat at Varsova (Mumbai) against the purchase of new residential property made during the year - HELD THAT:- The CBDT in Circular No. 672 dated 16/12/1993 has clarified that in terms of a scheme of the allotment and construction of the flat/house by the co- operative societies or the other institution are similar to those mentioned in para 2 of CBDT circular No. 471/Dated 15/10/1986 and thus such case may be treated as the construction of the flat for the purpose of section 54 and 54F of the Act. The Tribunal in the case of Ayushi Patni [2019 (1) TMI 1130 - ITAT PUNE] after following the decision of the Hon’ble Bombay High Court in the case of CIT Vs Smt. Beena Jain [1993 (11) TMI 7 - BOMBAY HIGH COURT] treated the date of the taking possession as the date of the purchase of the flat and allowed benefit of section. Thus, in view of undisputed facts of the case and the decision rendered in the case of CIT Vs. Smt. Beena K. Jain (supra), 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 and the appeal of Revenue is dismissed.
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