Assessee sold land to a builder. \u00a0\u00a0In addition to sale consideration in money form , there was a parallel understanding to receive additional consideration , in kind, of \u00a0\u00a0a ready made flat in the builders project on the same land \u00a0\u00a0. Though there was no agreement for flat but there was \u00a0an escrow document \u00a0\u00a0Assessee \u00a0in its return declared sale consideration received as well as value of flat receivable and claimed exemption u\/s 54F towards value of flat receivable. AO rejected claim u\/s 54F on ground that builder denied to have agreed to give any flat in kind and hence under 54F the criteria of having purchased flat failed. On appeal the ITAT held that \u00a0 due to disputes between Assessee \u00a0and builder this issue of allotment went to court and High Court \u00a0recognised the validity of escrow and thus \u00a0the allotment has the Court acceptance though case not finally decided\u00a0. \u00a0If AO is taxing the deemed value of flat as sale consideration then it is deemed that Assessee \u00a0has paid the full value of consideration as required under 54F of the Act . \u00a0Since Assessee \u00a0has performed his part of duty by disclosing the sale prior to its receipt , then it is deemed on the part of the AO to allow deduction on the same , despite the Dispute or delay in getting the flat\u00a0. Accordingly the\u00a0 exemption u\/s54F of the Act is allowed . (ITA No . 3642 \/M\/ 2017 \/ITA no. 3888\/M\/2017 \u00a0Bench \u201cE\u201d\u00a0 \u00a0dt -1-6\u00a0 .2021 ) ( AY. 2012 -13 )<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 54F: Capital gains- Investment in a residential house \u2013 Sale of land -Allotment of flat as per an escrow document -Denial by builder \u2013 Assessing Officer taxing the value of flat as deemed consideration and denying the exemption – Since Assessee has performed his part of duty by disclosing the sale prior to its receipt , then it is deemed on the part of the AO to allow deduction on the same , despite the Dispute or delay in getting the flat \u2013 Entitle to exemption [ S. 45 , 133 (6) ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-20729","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-5ol","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20729","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=20729"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20729\/revisions"}],"predecessor-version":[{"id":20730,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20729\/revisions\/20730"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=20729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=20729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=20729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}