Exemption under 54F, Income Tax

[MOHAMED YACOOB SHARIFF]

Sir,

One of the case which has audit objection was raised for the Asst. year 2009-10

Following is the brief facts of the case, Assesee sold the land on 02..05.2008.Purchased the old land and building on 01.02.2007, ( 15 months before the date of transfer of land). Assessee demolished the said building and constructed the new one for the self occupation. Assesee also owns one more property from which rental income is being offered to tax.

Assesee claimed the exemption for the long term capital gains, on the sale of land, for the investment made in the construction of residential building u/s 54F. Is it correct? or Not ? pl clarify

Posts / Replies

[CA GOPALJI AGRAWAL]

If the assessee can prove that the house has been constructed after 02.05.2008 then the amount invested in the whole construction would be deductible u/s 54F. Please refer the undermentioned case which may help you out.

2014 (1) TMI 446 - DELHI HIGH COURT

Commissioner of Income-tax Versus Bharti Mishra

Sections:- 054F,