Held Section 54F of the Act is a beneficial provision of promoting the construction of residential house. Therefore, the said provision has to be construed liberally for achieving the purpose for which it was incorporated in the statute. The intention of the Legislature was to encourage investments in the acquisition of a residential house and… Read More »
Held In our opinion, the liberal interpretation of the term purchase as it appear in section 54 has to be given also to the term ‘constructs’ appearing therein, in conjunction to the former. Even the Hon’ble jurisdictional High Court in the case of CIT v.Smt B.S. Shanthakumari [2015] 233 taxmann.com 347/60 taxmann.com 74 (Kar.) held… Read More »
Facts of the case The assessee had one residential house in Chennai, one commercial flat in Chennai, from out of both of which, he was deriving a total income of Rs.4,25,131/-. He also had a land in Neelankarai which was sold and a house property was purchased in Kodaikanal. Issue Can the Assessee claim Deduction… Read More »
Issue whether the assessee in order to avail benefit of Section 54F of the Act is required to utilize the amount for the purchase of the new asset from the sale proceeds of the original capital asset only. ? Held Section 54F of the Act nowhere envisages that the sale consideration obtained by the assessee… Read More »
Facts of the Case The appellant was owninq a property at 33, Srinivasa Perumal Sannathi II Street, Royapettah, Chennai – 600 014. This property was sold in April 2010 and the Proceeds were invested in August 2010 in another property having twin door numbers 10, Arunachala Achari Street and 8, Mian Sahib 11 Street at… Read More »
Did the Income Tax Appellate Tribunal fall into error in law in holding that the exemption under Section 54 could be availed for by the Assessee in view of the fact that the Assessee owned a residential house and was also owner of another residential house? HIGH COURT OF MADRAS In Dr. P.K. Vasanthi… Read More »
Facts of the Case Assessee sold property situated at Dr.Shivaram Karanth Nagar under a sale deed dated 06.10.2008 and capital gain on sale of said property was invested by the assessee by purchasing a residential site at Nagarbhavi, II Stage on 13.10.2008.Assessee on 02.06.2010 obtained approval of the building plan from the local authority namely… Read More »
Gift of Property to Spouse and Section 54F Q Whether gift of house to husband prior to date of transfer of original capital asset (other than any residential house) cannot be disregarded for purpose of reckoning assessee’s eligibility for deduction under section 54F even if assessee along with her husband continue to reside in same… Read More »
No denial of section 54F due to non completion of construction Question : Where assessee had invested net sale consideration on transfer of long-term asset in construction of a residential house property, Whether deduction of section 54F could be denied merely because the construction of house was not complete in all respects within 3 years… Read More »