TMI Blog2018 (11) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... session of the same was delivered to her only as on 18.05.2012. We are persuaded to subscribe to the claim of the ld. A.R that the purchase of new residential property would be substantially effected on the date when the assessee had paid the full consideration on the flat becoming ready for occupation and had obtained possession of the same. In the backdrop of our aforesaid observations, we are of the considered view that as the possession of the new residential property was delivered to the assessee on 18.05.2012 i.e. within a period of one year prior to the transfer of the property under consideration, thus the purchase of the same could safely be held to have been substantially effected on the said date. As relying on COMMISSIONER O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he requirements of the said section. b) That the learned CIT(A) failed to appreciate that the Appellant had purchased new asset (residential property) within the time line specified by the section 54 of the I.T. Act. c) That the learned CIT (A) failed to real ize that the Appellant had entered into in an agreement on 29-01-2009 by virtue of which, she acquired vested rights to purchase resident ial proper ty in the proposed const ruc t ion and no t just new property as alleged by the learned CIT (A) when in fact on 29.01.2009 the new property was not in existence. d) That the learned CIT (A) failed to appreciate that the Appellant got possession of new residential property on 18-05-2012 which is within the period of one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 392/-. On the basis of the aforesaid claim, the assessee had reflected the income under the head Capital gain at Rs.nil. It was noticed by the A.O that the assessee had entered into an agreement to purchase the new residential property viz. A- 801, Lodha Luxuria on 29.01.2009. On the basis of the aforesaid facts, the A.O was of the view that as the new residential property was purchased by the assessee beyond the stipulated period of one year before the transfer of the property under consideration, thus the said investment made by her was not eligible for claim of exemption under Sec.54. In the backdrop of his aforesaid deliberations the A.O disallowed the claim of exemption under Sec.54 of ₹ 49,89,213/- and assessed her income at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed into an agreement for purchase of the new residential property, thus it was incorrect on the part of the A.O to have held the same as the date of purchase by the assessee. The ld. A.R submitted that purchase of new residential property would be substantially effected on the date when the possession of same is delivered, and not on the date on which the sale agreement or the registration is done. In order to buttress his aforesaid contention the ld. A.R relied on the judgment of the Hon ble High Court of Bombay in the case of CIT Vs. Smt. Beena K. Jain (1994) 75 Taxman 145 (Bom). Per contra, the ld. Departmental Representative (for short D.R ) relied on the orders of the lower authorities. 6. We have heard the authorized representativ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . A.R that the purchase of new residential property would be substantially effected on the date when the assessee had paid the full consideration on the flat becoming ready for occupation and had obtained possession of the same. In the backdrop of our aforesaid observations, we are of the considered view that as the possession of the new residential property was delivered to the assessee on 18.05.2012 i.e. within a period of one year prior to the transfer of the property under consideration, thus the purchase of the same could safely be held to have been substantially effected on the said date. Our aforesaid view is fortified by the judgment of the Hon ble High Court of Bombay in the case of CIT Vs. Beena K. Jain (1994) 75 Taxman 145 (Bom), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the transaction and came to the conclusion that purchase was substantially effected when the agreement of purchase was carried out or completed by payment of full consideration on 29-7- 1988 and handing over of possession of the flat on the next day. We thus respectfully follow the aforesaid judgment of the Hon ble Jurisdictional High Court, and hold that the date of final occupation of the new residential property under consideration i.e 18.05.2012 shall be taken as the date of acquisition of the same by the assessee for the purpose of determining her eligibility towards claim of deduction under Sec. 54 of the Act. 8. The appeal of the assessee is allowed in terms of our aforesaid observations. Order pronounced in the open ..... X X X X Extracts X X X X X X X X Extracts X X X X
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