Section 54F relief turns on completion of purchase and property classification, leading to remand for fresh factual examination.

Entitlement to Section 54F relief depended on whether the residential purchase was completed within the statutory period and whether payments made to the builder, the later registration, and the possession record established a qualifying acquisition. The Tribunal noted that the full transaction trail had not been adequately examined and remanded the issue for fresh consideration. It also held that the assessee's compliance with the condition of not owning more than one residential house required a fresh factual enquiry because the nature of certain properties, supported by municipal, SRO, and GST records, had not been conclusively determined. The assessment-related questions were sent back for de novo examination.

---

---

Issues: (i) Whether the assessee was entitled to deduction under Section 54F of the Income-tax Act, 1961 on the basis of payment made to the builder despite the property registration and full possession being completed later. (ii) Whether the assessee satisfied the condition under Section 54F of not owning more than one residential house, and whether the documents relating to the claimed commercial properties required fresh examination.

Issue (i): Whether the assessee was entitled to deduction under Section 54F of the Income-tax Act, 1961 on the basis of payment made to the builder despite the property registration and full possession being completed later.

Analysis: The claim depended on whether the residential house was purchased within the statutory period. The record showed substantial payment had been made to the builder, but the balance consideration and the completed conveyance were material facts. The registered sale deed and the later payments introduced a factual aspect that had not been fully examined by the lower authorities. The issue required reconsideration on the basis of the complete transaction record and the statutory time requirement.

Conclusion: The issue was not finally decided on merits and was remanded for fresh examination.

Issue (ii): Whether the assessee satisfied the condition under Section 54F of not owning more than one residential house, and whether the documents relating to the claimed commercial properties required fresh examination.

Analysis: The assessee produced material suggesting that some properties shown in the return were commercial in nature, supported by SRO certificate, municipal tax records, and GST-related documents. The Tribunal found that the character of those properties and their relevance to the Section 54F condition had not been conclusively examined by the Assessing Officer. This aspect also required a fresh factual determination after considering the evidences on record and giving opportunity to the assessee.

Conclusion: The issue was remanded for fresh consideration by the Assessing Officer.

Final Conclusion: The assessment-related questions concerning eligibility for Section 54F relief were sent back for de novo examination, and the Revenue's appeal succeeded only to that limited extent.

Ratio Decidendi: Where entitlement to Section 54F relief turns on disputed facts regarding completion of purchase and the nature of other properties, and those facts are not fully examined, the matter may be remanded for fresh adjudication after considering all relevant evidence.

---