TMI Blog2022 (1) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration was received on 24.11.2014 and whether amount of ₹ 9,37,94,130/- paid by the assessee on 31- 10-2013 under agreement dated 19-09-2013 for acquisition of immovable property at Lodha Bellisimo can be off set against the gains earned by him on the sale of under construction immovable property (a duplex flat bearing no. 601 701) at Bhagtani Krishang on 22-07-2014 under a decree of the Hon'ble Bombay High Court u/s 54F? - HELD THAT:- For the purpose of section 54F of the Act, the date of sale is the date of agreement to sell and not when the full and final consideration is received by the seller. In the present case the Hon ble High Court passed consent decree providing for sale of both flats i.e. flat nos. 601 and 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital gain arising therefrom in flat no.4801 and thus claimed deduction u/s 54F of the Act. Accordingly, the AO called upon the assesse to furnish the details of sale of flat nos. 601 and 701 along with their agreements which were duly furnished before the AO. The chronology of events and the relevant dates are reproduced for the sake of ready reference: Sr. No. Date Particulars 1. 31-10-2013 Full payment for purchase of Flat No. C-4801 in Lodha Bellisimo and possession received pursuant to agreement dated 2. 18.07.2014 Consent Terms documenting sale of duplex flat comprising of Flats 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 2,40,03,298/- in respect of flat no. 701 should not be rejected. The assessee submitted before the AO that the date on which the transfer of Flat No. 701 took place was 22.07.2014 when the court decree was passed and not when the last instalment of sales consideration was received. However the reply of the assessee did not find favour with the AO and he rejected the claim of the assessee u/s 54F of the Act to the extent of gain arising from sale of flat No. 701. 5. In the appellate proceedings, the ld. CIT(A) allowed the appeal of the assessee by observing that the sale of the whole of the under-construction immovable property (i.e. duplex flat comprising of both flat no. 601 and 701) was as decreed by the Hon ble High Court vide its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e final installment of sale consideration was received on 24.11.2014 and whether amount of ₹ 9,37,94,130/- paid by the assessee on 31- 10-2013 under agreement dated 19-09-2013 for acquisition of immovable property at Lodha Bellisimo can be off set against the gains earned by him on the sale of under construction immovable property (a duplex flat bearing no. 601 701) at Bhagtani Krishang on 22-07-2014 under a decree of the Hon'ble Bombay High Court u/s 54F of the Act. For the sake of ready reference and better understanding the provisions of section 54F of the Act are extracted below: 54F. (1) ... the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the hearing Departmental Representative reiterated the stand of the AO and has relied on the assessment order whereas the assessee s counsel in addition to supporting the findings of CIT(A) on the basis of the decisions relied upon by the CIT(A) also placed reliance on a recent decision of the Hon ble Gujarat High Court in the case of Kishorebhai Harjibhai Patel vs. ITO (417 ITR 547) which, after following the decision of the Apex Court in Sanjeev Lal (supra) and after considering the decisions several other High Courts across the country including the jurisdictional High Court in the case of CIT vs Girish Ragha (239 Taxman 449), held that the date of transfer for the purposes of section 54F was the date of the agreement of sale. The ld ..... X X X X Extracts X X X X X X X X Extracts X X X X
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