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TMI Blog2015 (12) TMI 1815X X X X Extracts X X X X X X X X Extracts X X X X ..... rs 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 ₹ 1,15,00,000/- to the builder/housing society. This amount is almost equal to the gross sale price of ₹ 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 finally came on 15-12-2009 prescribing some construction regulations. We are of the view in these facts that the same has to be read applicable from the date of application. The same falls within three years of 11-05-2006. We are further of the view that the assessee has already ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 2,69,646/-. He had sold a house property on 11-05-2006 for ₹ 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. The assessee placed on record payment receipt dated 12-03-2008 proving five payment instances between 18-05- 2006 to 08-06-2006 under the heads against land in first three occasions and without interest deposit in the latter two. The Assessing Officer took up scrutiny. He sought to trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me 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. ₹ 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 ₹ 115 lakhs paid by the appellant to the developer, an amount of ₹ 27 lacs was towards the cost of land and the balance amount of ₹ 88 lacs was towards the cost of construction. Subsequently, the society has also executed the Conveyance Deed in respect of the plot of land in favour of the appellant on 31-03-2008. Though the developer started the construction in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot 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 of further instalments is only a follow-up action and taking delivery of possession is only a formality. Circular No. 672 is to the effect that if the terms of the schemes by cooperative societies are similar to those mentioned in para-2 of Circular No. 471, such cases may be trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 by investing the capital gains and constructed residential house and also produced completion certificate from the municipal authority, exemption under s. 54F could not be denied on the ground that the construction was not completed within the specified period. 5.1.8. In the instant case th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale 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 ₹ 1,15,00,000/- to the builder/housing society. This amount is almost equal to the gross sale price of ₹ 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 finally came on 15-12-2009 prescribing some construction regulations. We are of the view in these facts that the same has to be read applicable from the date of application. The same falls within three years of 11-05-2006. We are further of the view that the assessee has already advanced a su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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