Deduction 54F

Whether it is mandatory that consturcition of house should be complete to claim exemption u/s 54F ?

[2008] 302 ITR 286 (Madras)in the case of Sardarmal Kothari Hon'ble HC, Madras decided that in order to get benefit under section 54F, assessee need not complete construction of house and occupy same.

[2012] 19 taxmann.com 17 (Kar.)Sambandam Udaykumar
Capital gains - Exemption of, in case of investment in residential house - Assessment year 2006-07 - Whether section 54F is a beneficial provision for promoting construction of residential house, and, therefore, it has to be construed liberally for achieving purpose for which it was incorporated in statute - Held, yes - Whether once it is demonstrated that consideration received on transfer of a capital asset has been invested either in purchase or in construction of a residential house, even though these transactions are not complete in all respects as required under law, same would not disentitle assessee from benefit of exemption under section 54F - Held, yes - Assessee sold certain shares and earned capital gains and within 12 months made investment for construction of a residential house - Exemption under section 54F was claimed by assessee with regard to said portion - Assessing Officer, however, denied exemption under section 54F on ground that construction was not complete within three years as certain work like flooring, electrical fittings, fittings of door shutters, etc., were still pending - However, registered sale deed was executed showing transfer of property in assessee's favour and assessee was in possession and occupation of said property - Whether assessee was entitled to benefit of exemption under section 54F - Held, yes [In favour of assessee]

[2016] 69 taxmann.com 95 (Bombay) Section 54 of the Income-tax Act, 1961 - Capital gains - Profit on sale of property used for residence (Time period for Investment) - Assessee sold residential property - He entered into an agreement with a builder for purchase of a flat and invested sale proceeds in it within prescribed period of two years - He was required to get house and occupancy certificate within two years - After purchase of property, there was a civil suit filed by other parties and assessee could not complete construction and licence for constructing house was accordingly issued after 4 years - Whether since assessee had invested money within stipulated period and delay in obtaining occupancy certificate was beyond control of assessee, assessee would be entitled for deduction under section 54 - Held, yes [Para 3] [In favour of assessee

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