Section 54 of Income Tax Act, 1961—Eligibility of deduction u/s 54 of the act—In the instant case, the appeal is preferred by assessee against the order passed by CIT wherein CIT denied the deduction claimed by assessee u/s 54 of the act.
The A.O was of the view that as the new residential property was purchased by the assessee beyond the stipulated period of one year before the transfer of the property under consideration, thus the said investment made by her was not eligible for claim of exemption under Sec.54.

Held that— though the assessee had entered into an agreement to purchase the new property viz. A-801, Lodha Luxuria on 29.01.2009, but then the possession of the same was delivered to her only as on 18.05.2012 i.e. within a period of one year prior to the transfer of the property under consideration, thus the purchase of the same could safely be held to have been substantially effected on the said date. Our aforesaid view is fortified by the judgment of the Hon’ble High Court of Bombay in the case of CIT Vs. Beena K. Jain (1994) 75 Taxman 145 (Bom)
We thus respectfully follow the aforesaid judgment of the Hon’ble Jurisdictional High Court, and hold that the date of final occupation of the new residential property under consideration i.e. 18.05.2012 shall be taken as the date of acquisition of the same by the assessee for the purpose of determining her eligibility towards claim of deduction under Sec. 54 of the Act.[SMT. RANJANA R. DESHMUKH VERSUS INCOME TAX OFFICE, ASHAR I.T. PARK] [2018] [7] [ITCD Online] [5] [ ITAT MUMBAI]