Only Registered Sale Agreements Eligible of Capital Gain Exemption u/s 54: ITAT says Unregistered Agreement Lacks Evidentiary Value

The ITAT has ruled that only registered sale agreements are eligible for capital gain exemption under Section 54 of the Income Tax Act, stating that unregistered agreements lack evidentiary value. This decision underscores the importance of legal formalities in property transactions for claiming tax benefits. The tribunal emphasized that merely entering into an unregistered agreement to sell, without formal registration, does not establish a valid transfer of ownership as required for claiming capital gain exemptions. This ruling serves as a crucial reminder to taxpayers about the necessity of proper documentation and registration for property transactions to secure tax advantages.