Sh. Sanjeev Lal Etc. Etc. Appellants Versus Commissioner of Income Tax, Chandigarh & Anr. Respondents

Parties Involved

Facts Summary

Shri Amrit Lal, the owner of a residential house, executed a Will giving life interest to his wife and upon her death, the house was to be given to his grandchildren. Upon the death of Shri Amrit Lal's wife, the ownership of the house came to the appellants. The appellants decided to sell the house and entered into an agreement to sell with Shri Sandeep Talwar on 27th December, 2002. However, due to litigation challenging the Will, the sale deed could not be executed until the suit was dismissed in May 2004. The sale deed was finally executed and registered on 24th September, 2004. The appellants used the capital gain from the sale to purchase another residential house on 30th April, 2003. They did not disclose the capital gain in their income tax return for the Assessment Year 2005-2006, believing it was not chargeable to income tax under Section 54 of the Income Tax Act, 1961.…

Legal Issues

• 1. Whether the date of the agreement to sell should be considered as the date of transfer of the property for the purpose of availing benefit under Section 54 of the Income Tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Sundeep Dhuper vs. ACIT, Circle-3

  B Bench, Delhi benchAY 2008-09Allowed

• M/s. Savi Realty Holding Pvt. Ltd. Vs. Dy. Commissioner of Income Tax

  Hyderabad bench

• Material Research Instruments Vs. ACIT-Circle 16(2), Mumbai

  Mumbai Bench benchAY 2006-07Partly Allowed

• Smt. Bhagwati Mohata vs. Assessment Unit, I.T. Department, NFAC

  Kolkata bench

• Mayura Mohta Vs. DCIT, Circle-29

  Kolkata benchAY 2017-18Allowed

• Pradeep Kumar Yadav vs. Income Tax Officer

  Delhi Bench benchAY 2014-15Allowed