Facts:
Dates below are imaginary:
- Sold ancestral property ( land ) in 2012 Jan and received proceeds in the same month.
- Used full proceeds from the sale to purchase an apartment in 2012 Jun via an agreement of sale, paying the full amount via bank transfer to seller account and have respective receipts and bank challan numbers.
- But registration of the purchased flat was done only in Aug 2014, due to delay in construction on the part of the seller.
- Clained 54 F long term capital gain exemption for the proceeds received and reinvested in flat purchase.
Issue:
- Income tax dept denied 54 F exemption on the ground that even though the flat purchase was made within the 54F stipulated 2 years, the registration of the apartment happened after more than 2 years.
- Initial appeal has failed and currently the matter is in front of CIT appeals.
Questions:
- How should we proceed in the matter, what stand do we need to take ?
- Any famous case laws which you can point us to , which can clinch the matter in our favour ?
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