Gopilal Laddha Vs. Assistant Commissioner of Income Tax, I.T. A. No. 1356/Bang/2012, Date of Order: 31.10.2013, ITAT - Bangalore Section 54F of the Income Tax Act, 1961 Whether the booking of flat and availing the housing loan for investment confer the ownership of the said property to the assessee. Held_NO In brief, the AO restricted the assessees claim u/s 54 F from Rs.46,11,166 to Rs.6,23,433 for the reasons that (i) the booking for the said flat was made by the assessee on 19.1.2006 and (ii) a loan of Rs.40 lakhs was taken on 24.5.2006 towards investment in the said flat being more than one year, prior to sale acquisition of the said property on 21.7.2008. However, the assessee raised contention that he has acquired the new property only on 11.9.2008 by Registered Sale Deed and not before that and as such whole amount as invested is eligible for exemption u/s 54F of the Act. The Tribunal held that the housing loan of Rs.40 lakhs availed for investment in the purchase thereof has not vested the assessee with ownership of the new asset. The assessee has been vested with the ownership of the new flat only by virtue of the Registered Sale Deed dt.11.9.2008. Therefore, the assessee is entitled to exemption u/s 54F of the Act to the extent of Rs.46,11,166 as claimed by it. CA Arun Kumar Chandak charteredaccountantdelhi/
Posted on: Tue, 08 Jul 2014 12:04:16 +0000
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