Home › Income-Tax Act › Uday Lad v. ACIT ( 2022) The Chamber’s Journal -May – P. 81 ( Mum ) ( Trib)

Uday Lad v. ACIT ( 2022) The Chamber’s Journal -May – P. 81 ( Mum ) ( Trib)

S. 54 : Capital gains – Profit on sale of property used for residence – Date of possession – Date of purchase is the date on which a residential house becomes ready for exemption [ S. 45 ]

The assessee sold a  residential house on 27 -12 -2012 . The  agreement of the new residential house was entered on 29 -10-2011 and the possession was received on 6- 1 -2012 . The assessee claimed the deduction u/s 54 of the Act . The AO rejected the claim on the ground that the agreement was entered in to on 29 -10 -11 (i.e.one year before the date of sale / transfer of the old residential house ). Order of the AO was affirmed by the CIT(A) . On appeal the Tribunal held that  agreement was entered on 29 -10 -2011 and the substantial payment was made on same day however  the possession was received on 6-1-2012  which fell within a period of one year before the date of transfer of the residential house (i.e. 27 -12 -2012). The appeal was allowed . Referred D.M .Dujod v.ITO ( ITA No. 4554/ Bom/1986 ) ( ITA NO. 6735 / 2019  dt. 19 -4 -2022)( AY. 2012 -13 )