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TMI Blog2021 (1) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... ompleted. Under the provisions of Sec. 54F of the Act, the residential property should be purchased within a specified time for claim of exemption and the A.O. has not disputed. There is no mandatory requirement of registration at the time of entering into agreement. Therefore, we are of the view, that though residential property is not registered but the assessee was able to prove the possession and confirmed by the builder, the exemption cannot be denied on this ground. Assessee is entitled for exemption under Section 54F of the Act for more than one residential flat in the same complex - The amendment to Section 54F of the Act in Finance Act, 2014 is effective from Assessment Year 2015-16. We also rely on the observations of CIT Vs. V R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its on 5th, 6th 7th Floor in Sidhivinayak Tower. 3. In the facts and circumstances of the case and in law, the CIT(A) erred in overlooking the facts that under income Tax for the purpose of deduction u/s 54 or u/s 54F holding of legal title i.e registration of immovable property is not necessary because if the tax payer pays full consideration or substantial portion of it, before the due date of filing return u/s 139, exemption u/s 54F is available, even if possession is handed over after the stipulated period of the sale or even when sale deed is registered later on. 4. In the facts and circumstances of the case and in law, the CIT(A) erred in confirming the disallowance of deduction amounting to ₹ 1,69,08,169/- claimed by the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act along with annexure. In compliance, the Ld. AR of the assessee appeared from time to time and made the submissions. The Ld. AR submitted that the assessee has claimed the exemption u/s 54F of the Act. The contentions of the assessee referred at para-3 of the assessment order that the investment in 12 residential flats should be treated as investment in one house and claimed exemption u/s 54F of the Act. Whereas, the A.O found the contentions and explanations submitted in letter dated 20.01.2015 are not acceptable and dealt on the disputed issues at para 4 of the order and further denied the claim, as the assessee has no credible evidence in the form of registered sale deed or agreements and multiple units have been combined to create o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but he only alleged that the document is not registered and accept the facts that the M/s Siddhi Construction has delivered and confirmed that the assessee has purchased 12 flats as per the agreement of sale in 3 floors and the registration formalities have to be completed. Under the provisions of Sec. 54F of the Act, the residential property should be purchased within a specified time for claim of exemption and the A.O. has not disputed. Further, there is no mandatory requirement of registration at the time of entering into agreement. Therefore, we are of the view, that though residential property is not registered but the assessee was able to prove the possession and confirmed by the builder, the exemption cannot be denied on this ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of the new asset bears to the net consideration, shall not be charged under section 45. 5. We also rely on the observations of the Hon'ble Madras High Court in the case of CIT Vs. V R Karpagam (ITA No.301 of 2014 Dt.18.8.2014), where it was held that the Amendment to Section 54F of the Act being Para Materia to the Section 54 of the Act with regard to substitution of Residential Unit by Finance Act No.2, 2014 was operative only effective w.e.f. 1.4.2015 whereby exemption for more than one unit /flat (residential house) is to be withdrawn. However, prior to the aforesaid amendment a resi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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