TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether exemption under section 54F could be denied on the ground that the residential house was constructed on leasehold land and the assessee was not the absolute owner; (ii) whether exemption under section 54F could be claimed in respect of capital gains invested in instalments over different assessment years in the same eligible residential property.
Issue (i): Whether exemption under section 54F could be denied on the ground that the residential house was constructed on leasehold land and the assessee was not the absolute owner.
Analysis: The leasehold rights were for a long duration and carried substantial incidents of ownership, including rights of transfer and dealing with the property. The reasoning applied was that a long lease confers dominion over the property sufficient to treat the assessee as having purchased the asset for the purpose of the exemption, and the mere absence of absolute title did not defeat eligibility.
Conclusion: Exemption under section 54F could not be denied merely because the house stood on leasehold land; the issue was decided in favour of the assessee.
Issue (ii): Whether exemption under section 54F could be claimed in respect of capital gains invested in instalments over different assessment years in the same eligible residential property.
Analysis: The provision was read as permitting exemption where the investment is made within the stipulated statutory period, and no prohibition was found against claiming the benefit more than once or in parts for the same residential property, provided the investments are within the prescribed time and against capital gains arising over the relevant years.
Conclusion: The assessee was entitled to claim exemption under section 54F for investment made in instalments in the same residential property.
Final Conclusion: The assessment order and the appellate denial were set aside to the extent they rejected the exemption claim, and the assessee's exemption under section 54F was allowed.
Ratio Decidendi: For the purpose of section 54F, long leasehold rights with substantial incidents of ownership can satisfy the ownership requirement, and exemption is not barred where eligible investment in the residential house is made within the statutory period in instalments.
TaxTMI 
TaxTMI 
