TaxTMI Login
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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: Whether the assessee was entitled to deduction under section 54F in respect of capital gains arising from sale of her share in jointly owned immovable property, where the sale proceeds were deposited in the capital gains account, part of the amount was utilised for construction of a residential house, and completion was prevented by court restraints.
Analysis: The assessee had sold her 50% share in the jointly held property and had invested the capital gains in a capital gains account earmarked for construction of a residential house. The record showed partial utilisation of the funds for construction and no finding of diversion, withdrawal, or personal use of the deposited amount. The inability to complete construction was attributed to subsisting stay orders, and the assessee's co-owner spouse, on similar facts, had been granted the same relief. On these facts, the statutory conditions for section 54F were found to be satisfied in substance.
Conclusion: The disallowance of deduction under section 54F was deleted and the exemption was directed to be allowed to the assessee.
Ratio Decidendi: Where capital gains are duly deposited in the prescribed account and utilised for construction of a residential house, exemption under section 54F cannot be denied merely because construction could not be completed within time due to circumstances beyond the assessee's control, absent any diversion or misuse of the funds.
TaxTMI 
