Our client had no self occupied property in F.Y.2012-13, but has purchased a new property in f.y.2013-14, but the building in which they have purchased the flat did not get the occupational certificate as yet but the client has received the keys of the flat(i.e. he can go and stay over there).
The client is repaying the loan(Principal+Interest) on this property.
Can it be considered as a self occupied property? and deduction u/s 24 can be taken?
YES IT SHALL BE CONSIDERED AS SELF OCCUPIED PRORETY AND CAN CLAIM DEDUCTION U/S 24(b)
REASON:-
1.Section 27(iiia) :-
A person who is allowed to take or retain the possession of any building or part thereof in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act shall be the deemed owner of that house property. This would include cases where the –
This would include cases where the –
(1) possession of property has been handed over to the buyer
(2) sale consideration has been paid or promised to be paid to the seller by the buyer
(3) sale deed has not been executed in favour of the buyer, although certain other documents like power of attorney/agreement to sell/will etc. have been executed.
In all the above cases, the buyer would be deemed to be the owner of the property although it is not registered in his name
2.SUPREME COURT OF INDIA IN Commissioner of Income-tax v.Podar Cement (P) Ltd HAS HELD:-
For purpose of section 22 ‘owner’ is a person who is entitled to receive income in his own right and, as such, where a house property is handed over to a purchaser to enjoy fruits of that property by contractor/builder the purchaser is to be treated as ‘owner’ of that property for purpose of section 22 even though no registered documents as required under section 54 of the Transfer of Property Act or the Registration Act are executed
CAclubindia
