Exemption u/s 54

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CA Bhanwar Borana (Querist)
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09 November 2013 dear all, one of my client purchase a house property that was in underconstruction as on 1-2-2009 and start paying instalment to builder that properly was completely constructed on 1_2_2013 and he recd possession on Feb 13, now as on 15_9_13 he sold one residential property...now my question is that..can he take benifit of sec 54 becouse he recd possession of that propery on Feb 13 "as per sec 54 time limit he can purchase property within 1 year before the date of transfer ". Date of purchase is 1_2_2009 or Feb 2013(possession) ???? thanks

Nikhil Kaushik

Nikhil Kaushik (Expert)
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10 November 2013 there are conflicting views on this. whats important is what happened on 1-2-2009? Did you receive a binding allotment letter on that day stating the exact details of the house you bought? If yes, then it is quite possible that 1-2-2009 shall be considered as the date of purchase of the asset and you wont be able to claim benefit against the same under Section 54.