The Tribunal allowed the appeals filed by Sunil Amritlal Shah and Rita Sunil Shah, holding that the date of possession of new residential house, rather than the agreement date, should be considered for determining eligibility for deduction under Section 54. The assessee sold a jointly owned flat on 10/2/2011 and claimed exemption under Section 54 for the purchase of a new residential property. While the purchase agreement for the new residential property was executed on 25/7/2009, the possession was granted on 2/2/2011. The Assessing Officer rejected the claim for exemption, taking the agreement date as the purchase date, which fell outside the prescribed one-year window before the sale. However, the Tribunal held that for under-construction properties, the date of possession is the relevant date for determining the purchase. As the possession was granted within the required period, the assessee was entitled to the exemption.  Followed, PCIT v. Akshay Sobti (2020) 423 ITR 321 (Delhi)(HC)  CIT v. Beena K. Jain(1996)  217 ITR 363 (Bom)(HC), Bastimal K jain v ITO [2016] 76 taxmann.com 368 (Mum) (Trib). (A.Y. 2011-12)