No denial of sec. 54 exemption if delay in getting possession of flat was on account of builder
No denial of sec. 54 exemption if delay in getting possession of flat was on account of builder
Bal Kishan Atal v. ACIT – [2019] 104 taxmann.com 432 (Delhi – Trib.)
The assessee had sold a property and invested the capital gains in a new residential flat. He claim the long-term capital gain exemption under section 54. Assessing Officer (AO) disallowed the claim of deduction on account that neither the assessee had taken possession of said residential flat nor the purchase deed was executed in favour of him within the period of three years from the date of transfer of original asset. CIT(A) also confirmed the action of the AO.
The Delhi ITAT held that delay in obtaining possession or getting purchase deed executed, was on account of the developer. Assessee had made payment for purchase of flat to developer within stipulated period. However, he could not obtain possession and got purchase deed executed within period of three years as there was a complaint filed against developer with National Consumer Dispute Redressal Commission which had put stay on developer. Since the delay in obtaining possession of flat was by reason beyond control of assessee, exemption under section 54 could not be denied.