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TMI Blog2024 (8) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... ichand Narpal Nagda (deceased) [ 1991 (12) TMI 3 - BOMBAY HIGH COURT] wherein the Hon ble High Court after referring to the decision of CIT Vs. T.N.Aravinda Reddy [ 1979 (10) TMI 1 - SUPREME COURT] and the decision of Mrs. Shahzada Begum [ 1988 (3) TMI 456 - ANDHRA PRADESH HIGH COURT] held that the term purchase employed in sub-section (2) of section 54, is not used in the sense of legal transfer and therefore, the holding of a legal title within a period of one year is not a condition precedent for availing deduction u/s. 54. The recital of the sale deed clearly says that possession of the property was taken on 31.03.2015 which is within the period of one year before the date of sale of original asset. The covenants in the sale deed execut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. CIT(A) ought to have considered submission of the appellant that amount of Rs. 90,00,000/- paid in cash is eligible for exemption u/s. 54 and 54F of the Income Tax Act as the same was allowed to be capitalized by Income Tax Settlement Commission. 6. Ld. CIT(A) ought to have considered submission of appellant that flats which were not in existence as on the date of transfer of Original Asset No.1 forms part of sales consideration under Joint Development Agreement and the same should not be treated as investments in flats. 3. Brief facts of the case are that the appellant is an individual, filed the Return of Income for the A.Y. 2016-17 on 07.03.2017 declaring total income of Rs. 96,55,810/-. Against the said return of income, the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on page 2/3 of the assessment order and a further sum of Rs. 90,00,000/- was paid in cash in 2014 as per MOU dated 19.05.2014. The said claim was denied by the AO by holding that (1) deduction u/s. 54/54F cannot be claimed simultaneously in respect of the same asset; and (2) payment for purchase of new house was made prior to one year before the sale of the original asset. 5. Being aggrieved by the above disallowance of claim of exemption u/s. 54/54F, an appeal was filed before the CIT(A), who vide impugned order confirmed the action of the AO in disallowing the claim for deduction u/s. 54/54F by holding that the possession agreement dated 31.03.2015 is a fabricated document in view of the statement made by him u/s. 132(4) of the Act on 19. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led for deduction u/s. 54/54F of the Act. 9. We heard the rival submissions and perused the material on record. The solitary issue in the present appeal revolves round the entitlement of assessee for deduction u/s. 54/54F of the Income-tax Act, 1961. From the perusal of the assessment order, it would reveal that the AO had denied the claim for deduction u/s. 54/54F, firstly on the ground that no deduction u/s. 54F/54F can be claimed simultaneously in respect of the new residential house and secondly, the new residential property was purchased before one year prior to the sale of original asset. Admittedly, the sale consideration was paid prior to the one year before the sale of original asset. There is no bar under law to claim deduction si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, therefore, the holding of a legal title within a period of one year is not a condition precedent for attracting section 54. In the instant case, the whole consideration was paid, possession of the flat was obtained and it was actually put to use for dwelling within four months, as a result exemption contemplated under section 54 was clearly attracted. 7. Our pointed attention was drawn by the Revenue to the decision of the Supreme Court in the case of Alapati Venkataramiah v. CIT wherein the word transfer as found in section 12(b) of the Indian Income-tax Act, 1922, is interpreted as meaning passing of title . Since the word interpreted as well as its context are different, the ratio of that decision will have no application to the insta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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