Section 54F Time Limit For Construction: High Court Takes Liberal View

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From: editor@itatonline.org <itatonline.org@gmail.com>
Date: Fri, Mar 9, 2012 at 10:04 AM
Subject: Message from EGroup of SolapurCAs S. 54F Time Limit For Construction: High Court Takes Liberal View
To: editor@itatonline.org

 

Dear Subscriber,

 

The following important judgement is available for download at itatonline.org.

CIT vs. Sambandam Udaykumar (Karnataka High Court)

S. 54F does not require construction to be complete within specified period

 

The assessee sold shares for Rs. 4.18 crores and, within 12 months, invested Rs. 2.16 crores thereof to construct a house property and claimed exemption u/s 54F. However, as even after the expiry of 3 years of the date of transfer, the construction of the house was not complete and sale deed not executed, the AO & CIT (A) denied relief u/s 54F though the Tribunal granted it. On appeal by the department to the High Court, HELD dismissing the appeal:

 

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Regards,

Editor,