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TMI Blog2024 (6) TMI 522X X X X Extracts X X X X X X X X Extracts X X X X ..... 10) TMI 8 - SUPREME COURT] held that it is well-settled legal position that SA/GPA/WILL transactions are not `transfers' or `sales' and that such transactions cannot be treated as completed transfers or conveyances. They can continue to be treated as existing agreement of sale, but nothing prevents affected parties from getting registered Deeds of Conveyance to complete their title. If they are entered before this specific purpose day, they may be relied upon to apply for regularization of allotments/leases by Development Authorities u/s 53A of the Transfer of Property Act. Thus, in the present case, though the possession is in the hands of the assessee, the very basis of the title is challenged between the parties from whom the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the agreement to purchase cannot be construed as purchase deed within the meaning of provision of section 54F of the Act even though the required investment has been made within the stipulated time. Ld. CIT(A) erred in law as well as on facts in confirming the same 2. Ld. AO erred in law as well as on facts in rejecting the claim u/s. 54F of the Act by contending that registered purchase deed is must to claim the exemption u/s. 54F of the Act. Ld. CIT(A) erred in law as well as on facts in confirming the same. 3. Ld. AO and Id. CIT(A) erred in law as well as on facts not appreciating the fact that full sales consideration has been paid by the appellant and the sales has been recognized by the seller in its books of account and thereb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 82,64,245/- and as to how the conditions for claiming deduction u/s 54F of the Act were fulfilled by the assessee. After taking cognizance of the assessee s reply, the Assessing Officer observed that the documents related to agreement for sale was signed by the assessee himself as a Director of the company on 09.04.2015 which was not registered with the Stamp Duty Authority. The Assessing Officer further held that, as per the provision of Section 54F of the Act, the exemption is allowable if the assessee purchases a residential house within a period of two years after the date on which the transfer took place. The Assessing Officer observed that even after a lapse of three and half years from the date of sale of the property, i.e. 08.05.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de sale consideration. However, the registered conveyance deed could not be executed and the reason for the same is that there was litigation going on the title of the land over which the project was constructed. The details of the litigation in the title of the land was submitted before us by the ld. AR. The ld. AR further submitted that the litigation about the legal title of the property is yet pending; therefore, under these circumstances, the registered sale deed could not be executed for the genuine reasons which are beyond the control of the assessee and without any fault attributable to the assessee. The ld. AR submitted that the full sale consideration has been paid by the assessee; the amount is not refunded back to the assessee t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sale of the land. Thus, the Assessing Officer as well as the CIT(A) has rightly denied the exemption claimed by the assessee u/s 54F of the Act. 8. We have heard both the parties and perused all the relevant material available on record. The assessee has sold the land and purchased the property as stated by the ld. AR vide agreement to sale dated 09.04.2015. The assessee is in possession of the said residential flat which has been purchased by the assessee. The title of the land has been disputed but the construction of 72 flats has not been disputed as per records. The decision of Hon ble Apex Court in case of Suraj Lamp Industries Pvt. Ltd. (supra) held that it is well-settled legal position that SA/GPA/WILL transactions are not `transf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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