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TMI Blog2019 (1) TMI 1130X X X X Extracts X X X X X X X X Extracts X X X X ..... red as the date of purchase Held that:- In the instant case, full consideration has been paid by the assessee for purchase of residential flat within a period of one year before the date of transfer of capital asset. Thereafter, actual possession of the flat was delivered to assessee on 17.09.2010 i.e., within a period of one year prior to the date of transfer of capital asset. It is an un-rebutted fact that at the time of execution of agreement, the residential property was not in existence. Therefore, taking into consideration facts of the case, the date of possession of flat is the date of actual purchase for the purpose of claiming exemption u/s 54F of the Act. Thus in view of undisputed facts of the case and the decision rendered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng term capital gain arising from sale of shares invested in purchase of residential flat. The ld.A.R. submitted that the AO disallowed assessee s claim of exemption u/s 54F on the pretext that the flat was purchased by the assessee more than one year prior to the date of transfer of capital asset. The ld.A.R. pointed out that on the date of signing of agreement for purchase of flat, the residential house/flat was not even in existence. Therefore, date of signing of the agreement cannot be said to be the date of purchase of residential house. The assessee took possession of residential house/flat on 17.09.2010. The Occupation Certificate of flat was issued by the Municipal Corporation of Greater Mumbai on 17.02.2011, therefore, it is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m/2014 for A.Y. 2010-11 decided on 08.06.2016. The ld.A.R. submitted that the Department in its appeal has assailed the order of CIT(A) in granting part relief to assessee u/s 54F of the Act. 5. On the other hand, Shri Pankaj Garg representing the Department vehemently defended the assessment order in rejecting assessee s claim of exemption u/s 54F of the Act in respect of long term capital gains arising on transfer of shares. The ld.D.R. submitted that as per the provisions of Sec.54F, the assessee can claim exemption only in respect of purchase of residential house within a period of one year before or two years after the date on which the capital asset is transferred. In the present case, undisputedly, the assessee had transferred cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and of Department is that the date of execution of agreement for purchase of flat should be considered as the date of purchase. 8. The ld.A.R. has drawn our attention to Clause (12) of the deed of agreement between the assessee and the builder for purchase of flat. The said clause is reproduced herein below : 12. Nothing contained in this Agreement shall be construed to as to confer upon the Purchaser any right whatsoever into or over the said property or the said new building or any part thereof including the said premises on execution of this agreement. It is agreed by and between the parties that conferment of title in respect of the said premises shall take place in favour of the Purchasers only on the Purchaser s making full pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tances of the case, the Tribunal was right in allowing exemption of ₹ 11,04,423/- under section 54F of the Income Tax Act, 1961, considering the date of possession of the new residential premises instead of the date of sale agreement and the date of registration ? The Hon'ble High Court decided the issue in favour of the assessee by answering the question as under : 2. Under section 54F of the Income-tax Act, in the case of an assessee if any capital gain arises from the transfer of any longterm capital asset, not being a residential house, and the assessee has, within a period of one year before or two years after the date on which the transfer took place, purchased a residential house, the capital gain shall be dea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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