Exemption u/s 54 very urgent

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This query is : Resolved

Krishan Kumar Goyal (Querist)

21 March 2014 Dear Sir,

Please clear me I have sold two flat in 2010-2011 and invest this capital gain amount in one residential flat as on date 14/02/2011 and get exemption u/s 54 I have not get possession till date not there is some time rest for possession.Now case have been selected in scrutniy on the base of this capital gain. now assessing officer is not allowed the exemption of section 54 and issue a show case notice why should you given exemption u/s 54 while you have not get possession till date if i give some ruleing regarding this than assessing officer is bound to final the case as per ruling or not and he use his discreation and penalise to me with penalty and also tell me what is my fault when builder is not given possession on time i am also getting loss about this investment.

Thanks in advance

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

21 March 2014 Possession date is important to count the time limit for exemption under section 54.

Citation :- CIT Vs Mrs. Shahzada Begum [1988] 173 ITR 397(AP).

Since you have not obtained possession, in all probability, the assessing officer will not allow your claim meaning thereby you will be assessed to tax. If happens so, seek relief in appeal before higher authorities citing Chennai High court decision in CIT Vs. Sardamal Kothari [2006] 302 ITR 286.

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