Section 54F permits acquisition of a new residential asset...

Section 54F permits acquisition of a new residential asset within one year before transfer of the original asset and does not require that sale consideration alone fund the purchase. Where the flat is acquired within that period and the investment exceeds the capital gain, housing-loan financing does not disqualify the exemption; the capital-gain addition does not survive. Unexplained cash deposits remain liable to addition where the taxpayer produces no documentary evidence of source, fails to rebut adverse findings, and gives inconsistent explanations.