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TMI Blog2024 (7) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of sale of the land HELD THAT:- In the present case, the assessee s rights have been created in the said four flats at the moment they were allotted to the assessee on the payment of consideration which falls within the stipulated time period prescribed u/s. 54F of the Act, therefore, the allegation of the AO that the said flats are purchased by the assessee after the expiry of the four years does not hold water. Since all the four flats are constituted as single residential unit and allotted by the builder as one single residential unit though having four identification numbers, therefore, they can be termed as one residential unit for the purpose of claiming deduction u/s. 54F of the Act. Assessee has purchased one residential un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion claimed by the assessee for the reason that the assessee has purchased residential house beyond the period of two years from the date on which the transfer took place and further by observing that the assessee that purchased more than one residential house, since the assessee has purchased four flats. 4. Before us, the ld. AR of the assessee submitted that during the year under consideration the assessee has executed four sale deeds in the month of February-March, 2015 and has received sale consideration of Rs. 1,97,00,000/-. The sale consideration was invested by the assessee for acquisition of four flats in a project namely Khushi Classic at Laxmi Sagar, Bhubaneswar bearing Flat Nos.B-401,B-402,B-403 B-404, respectively. The payments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... our flats were purchased, however, they were situated in a single floor of a building and are purchased as a single unit by the assessee as well as sold as one unit by the builder also, therefore, the same cannot be termed as four independent flats and, thus, the claim of deduction u/s. 54F of the Act deserves to be allowed. 5. Per Contra, the ld. Sr. DR submitted that the assessee has purchased four different flats and the possession was given to her in the year 2019- i.e. after expiry of four years from the date of sale of the land, therefore, the lower authorities have rightly disallowed the claim of the assessee made u/s. 54F of the Act. He prayed for confirmation of the order of the lower authorities. 6. We have heard the rival submiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... failed to appreciate the fact that the flats were allotted to the assessee in the year 2015 itself i.e. the year when the capital assets were sold by the assessee against which the deduction u/s. 54F of the Act is claimed. In this regard, reliance is placed on the decision of the Hon ble Supreme Court in the case of Sanjeev Lal Vs. CIT, reported in [2014] 365 ITR 389 (SC), wherein the Hon ble Apex Court in para 21 has held as under :- 21. Now in the light of definition of transfer as defined under s. 2(47) of the Act, it is clear that when any right in respect of any capital asset is extinguished and that right is transferred to someone, it would amount to transfer of a capital asset. In the light of the aforestated definition, let us look ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n extinguished because after execution of the agreement to sell it was not open to the appellants to sell the property to someone else in accordance with law. A right in personam had been created in favour of the vendee, in whose favour the agreement to sell had been executed and who had also paid Rs. 15 lakhs by way of earnest money. No doubt, such contractual right can be surrendered or neutralized by the parties through subsequent contract or conduct leading to no transfer of the property to the proposed vendee but that is not the case at hand. (emphasis supplied) 7. As observed above, in the present case, the assessee s rights have been created in the said four flats at the moment they were allotted to the assessee on the payment of con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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