https://www.taxtmi.com/caselaws?id=750621 The ITAT Delhi ruled in favor of the assessee regarding LTCG exemption under Section 54. The AO had disallowed the deduction because construction of the new house began before selling the old properties and was funded through borrowed amounts rather than actual sale proceeds. The tribunal held that Section 54 does not require construction to commence only after the sale of the original asset, nor does it mandate using actual sale proceeds for construction. Following precedents from Madras HC, Punjab & Haryana HC, and Allahabad HC, the tribunal directed the AO to allow the Section 54 deduction as claimed. en-us Thu, 21 Mar 2024 00:00:00 +0530 Sun, 24 Mar 2024 14:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=750621 The ITAT Delhi ruled in favor of the assessee regarding LTCG exemption under Section 54. The AO had disallowed the deduction because construction of the new house began before selling the old properties and was funded through borrowed amounts rather than actual sale proceeds. The tribunal held that Section 54 does not require construction to commence only after the sale of the original asset, nor does it mandate using actual sale proceeds for construction. Following precedents from Madras HC, Punjab & Haryana HC, and Allahabad HC, the tribunal directed the AO to allow the Section 54 deduction as claimed. Case-Laws Income Tax Thu, 21 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=750621