Topic
The High Court condoned a 3,039-day delay in a Section 54 land acquisition appeal but, following the Supreme Court's New Okhla ruling, denied statutory benefits and interest for the delay period. Landowners receive enhanced compensation only; the acquiring body is not liable for interest or solatium accrued during the delay.
The ITAT Surat ruled that for capital gains computation under Section 2(42A) of the Income Tax Act, the holding period commences on the date of the allotment letter, not the date of registration. This clarification enables purchasers of builder flats to qualify for long term capital gain treatment and claim exemption under Section 54.
Even though the Punjab & Haryana High Court condoned a 1,388-day delay in filing the Section 54 appeal, it ruled that such condonation does not trigger interest on the awarded compensation. The decision clarifies that delay relief and interest entitlement are separate legal concepts, denying landowners any additional monetary award for the period of delay.
Partial payment of the purchase price does not invalidate a sale deed, the Delhi High Court ruled, applying Section 54 of the Transfer of Property Act to uphold the deed, possession and rent-arrears claims. This safeguards parties in property transactions from having agreements undone solely due to incomplete consideration.
ITAT Mumbai rules that surrendering rights in a capital asset (via allotment letter) constitutes a 'transfer' under Section 2(47), making capital gains taxable under Section 45. This disqualifies additions under Section 69A for unexplained income and preserves Section 54 exemption eligibility for assessees.