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2021 (10) TMI 863 - AT - Income TaxRevision u/s 263 - As per CIT assessment framed under section 143(3) of the Act as erroneous insofar prejudicial to the interest of revenue - transaction for the purchase of the property was not completed within the period prescribed under section 54 and AO without verifying all these details allowed the exemption to the assessee u//s 54 - HELD THAT:- As the assessee cannot be denied the benefit of deduction provided under section 54 of the Act in the given facts and circumstances merely on the reasoning that the property was not registered as well as the possession was not handed over to the assessee. Assessee has filed a special civil suit in the civil court of Ahmedabad. Assessee has sent many reminders to the vendor of the property which are placed on pages 51 to 56 of the paper book for the registration of the property. Thus it is transpired that the assessee failed to register the property in his name due to the reasons beyond the control despite having made the substantial payment for the purchase of the property. Thus in such cases we are of the view that the benefit available under section 54 of the Act cannot be denied to the assessee. AO during the course of assessment proceedings has conducted inquiries with respect to the claim of the assessee under section 54 as has framed the assessment under section 143(3) of the Act after necessary verification and application of mind. Therefore, it cannot be said that the order passed by the AO is erroneous insofar prejudicial to the interest of revenue on account of non-verification of the claim of the assessee under section 54 of the Act during the assessment proceedings - Decided in favour of assessee.
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