Court held that, (1)there can be a wide gap between an agreement to sale and an actual instance of sale being evidenced under a sale deed. Hence, upon mere execution of an agreement to sale, it cannot be said that such immovable property gets transferred to the purchaser even within the extended definition of Section 2(47) of the Act .(ii) Provisions of S. 54F of the Act clearly provide that construction of the residential unit should be done after the date of transfer but within three years from transfer date and hence if construction is prior to the date of transfer, the case of the assessee would not fall within the parameters of these provisions. (ITA. No 393 of 2014 dt. 01-05-2018) (AY. 2009-2010)
Ushaben Jayantilal Sodhan .v. CIT (2018) 407 ITR 276/ 255 Taxman 454 / 169 DTR 31 / 304 CTR 201(Guj)(HC).
S. 54F : Capital gains – Investment in a residential house – Construction of house – Deduction available only if construction is completed within a period of three years after date of transfer- Even within extended definition of S. 2(47) of the Act no transfer takes place on mere execution of agreement to sale [ S.2(47) , 45 ]