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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 ..... ferred to as "the Act" for short] for the Assessment Year 2015-16. 2. The Grounds of appeal are as under:- "1. Ld. AO erred in law as well as on facts in disallowing claim u/s. 54F of the Income-tax Act, 1961 of Rs.. 86,64,245/- on the sole ground 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onse to notices u/s 143(2) and 142(1) of the Act, the Authorized Representative of the assessee furnished the details and attended the proceedings. The Assessing Officer asked the assessee to explain as to how the assessee was eligible to claim deduction u/s 54F of Rs. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Less : Indexed cost of acquisition (-) 47,57,862 3 Less: Deduction u/s 54F (Investment in new property Rs. 98,00,000) (-) 82,64,245 4 Long Term Capital Gain [1-(2+3)] 1,73,38,893 6. The ld. AR submitted that the assessee entered into an agreement for sale on 09.04.2015 and also made 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 register ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ically, purchase of the flat has not been finalized, and, in fact, the basic title of the said purchase is doubted and is pending before the respective Civil Court/High Court till date. The fulfillment of Section 54F of the Act has to be that the purchase should be done within three years of the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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