Delay in registration of property cannot not be a ground to deny exemption U/S 54 and 54F:




Loading

Delay in registration of property cannot not be a ground to deny exemption U/S 54 and 54F:

Case:

1.  Assessee sold vacant land in October/November 2016 purchased a house property, and paid the entire sale consideration on 14-11-2016.

2.  The possession of the property was also given to the assessee on the same day itself.

3.  However the registration was delayed beyond the prescribed time limit of 24 months.

Can he be denied exemption U/S 54 F on account of a delay in registration of new house property?

1.  This case is similar to ITAT Vishakhapatnam judgment in the case of Siva Jyothi Palam (I.T.A. No.268/Viz/2024), where it was held that a mere delay in registration of property could not be a ground to deny exemption.

2.  Hon Delhi High Court in the case of Mr. Balraj v. CIT [2002]254ITR22(DELHI), has held that benefit provided under section 54 could be available, even though there was no registration within said period.

3.  In the case of Bastimal K Jain v. ITO (2016) 76 taxmann 368(Mumbai), the ITAT ruled that the Assessee’s claim for a deduction under section 54 should be based on the date when the builder handed over the possession of the flat and not the date of registration.

The copy of the order is as under:

1728557183-268 and CO 04 OF 2024 - SIVA JYOTHI PALAM




Menu