9911796707
TMI Blog2015 (12) TMI 1815X X X X Extracts X X X X X X X X Extracts X X X X ..... ubstantive ground seeks to restore the Assessing Officer's action making long term capital gains addition of Rs. 87,00,429/- in course of a regular assessment framed on 30-12- 2009 thereby disallowing section 54deduction. The assessee's cross objection on the other hand supports the CIT(A)'s order deleting the above stated addition. 3. We come to facts of the case now. The assessee-individual derives income from salary and other sources. He filed his return on 02-03-2009 declaring income of Rs. 2,69,646/-. He had sold a house property on 11-05-2006 for Rs. 1,18,00,000/-. This was followed by his deduction claim u/s. 54 of the Act arising from purchase of an open plot from M/s. Abhishree Residency Co-op. Housing Society Ltd on 31-03-2008. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant through statement of facts and written submissions. The undisputed facts in appellant's case are that the appellant sold the existing house property for a consideration of Rs. 118 lakhs on 11-05-2006 and immediately thereafter the appellant booked a residential bunglow in the scheme known as "Abhishree Residency-II" put up by the Society Abhishree Residiency-ll Co.op. Housing Society Ltd and the developer M/s. Sarthav Builders. The appellant paid the total amount of Rs. Rs. 115 lakhs towards the cost of land and cost of construction. The appellant has made thepayment between the period 18-05-2006 to 08-06-2006. Out of the total amount of Rs. 115 lakhs paid by the appellant to the developer, an amount of Rs. 27 lacs was towards the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vestment in new residential house property has been made and the rights in the new house property have been acquired by the appellant, on account of delay on the part of the society and developer to complete the construction, the exemption "available to the appellant u/s. 54 cannot be denied is supported by the circulars and case laws relied upon by the appellant. 5.1.4. The Id. A. R. relied on Circular Nos. 471 and 672. Circular No. 471 is to the effect that the self-financing scheme of the Delhi Development Authority shall be treated as case of construction of the flat. The allotment letter issued after the payment of first installment is final and the allottee gets title to the property on the issuance of allotment letter and payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of CIT vs. R. L Sood (245 ITR 727) (Delhi), after considering Circular No. 471, it was held that assessee having entered into an agreement for purchase of new flat within four days of sale of old property and paid a substantial amount he had acquired substantial domain over the new flat within the specified period of one year and therefore, benefit of S. 54 could not be denied merely because the builder failed to hand over possession of flat to assessee within one year or the sale deed was registered later. 5.1.7. In the case of CIT vs. Sardarmal Kothari (302 ITR 286)(Mad), Circular No. 667 came up for consideration. After due consideration of the contents of the said Circular, it was held that assessee having purchased land b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arrel that this statutory provision envisages three basic conditions to be fulfilled by the claimant assessee. First one is that the new property can be purchased within a period of one year before executing the sale deed. Second one is that the same can be purchased within two years after the sale deed. Third and final condition stipulates construction of a new house within three years from the date of transfer. It has come on record that the assessee has paid a gross sum of Rs. 1,15,00,000/- to the builder/housing society. This amount is almost equal to the gross sale price of Rs. 1,18,00,000/-. We repeat that conveyance deed in his favour is dated 31-03-2008. The builder thereafter applied for AUDA's permission on 24-012-2008 which final ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
