The appellant did not acquire a new residential property within ...

Appellant failed to acquire new property within time limit, but relevant date for deduction u/s 54 is payment & possession, not "one year before transfer". Entitled to deduction.

Case Laws     Income Tax

July 27, 2024

The appellant did not acquire a new residential property within the specified time period, failing the mandatory condition for deduction u/s 54. The CIT(A)-NFAC incorrectly invoked the "one year before the transfer" limb, concluding that the assessee is ineligible for deduction. However, the relevant date for computing the limitation u/s 54 in all three eventualities is the payment of consideration and possession of the new property. Judicial precedents support this interpretation. The assessee is entitled to the deduction u/s 54.

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