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2021 (9) TMI 344 - AT - Income TaxExemption u/s 54 - computation of capital gain - as new asset was purchased more than one year prior to the date on which the transfer in respect of the residential house had been effect AO disallowed the claim of exemption whether valid transfer took place within the meaning of section 2(47)? - assessee has intentionally projected the date of agreement of purchase of new asset, being May 2016/August, 2016 instead of the actual date of signing of Memorandum of Understanding only for the purpose of claiming exemption under section 54 - CIT-A allowed the deduction - HELD THAT:- CIT(A) has not discussed anything to hold that the sale of Bangalore flat by the assessee in March, 2017 was well within the permissible period of one year from the date of purchase of the new flat in question. S. No. 4 in the table given in the assessment order in page 3 shows that the assessee has paid a sum on account payee cheque on 18.02.2016 to M/s. DLF Home Developers Ltd., whereas, the DLF has issued allotment letter dated 05.04.2016. However, the ld. CIT(A) has not discussed anything about the above variation. Subsequent to DLF allotment letter dated 05.04.2016, M/s. DLF Home Developers Ltd. executed registered conveyance deed only on 16.08.2016, but in his written submission dated 06.03.2019 filed before the Assessing Officer, the assessee has claimed that physical possession of the flat was given to him sometime in May, 2016. CIT(A) has not considered the above facts in his appellate order. Therefore, we set aside the appellate order and remit the matter back to the file of the ld. CIT(A) and the ld. CIT(A) should examine the nature of entire payments and decide exact date of valid sale transaction of the new flat by passing an elaborate speaking order in accordance with law. Ground raised by the Revenue is allowed for statistical purposes.
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