https://www.taxtmi.com/caselaws?id=456982 ITAT Mumbai ruled in favor of assessee regarding exemption under sections 54 and 54F for unutilized capital gains account funds. Assessee had invested in residential property through builder who failed to complete construction, leading to pending litigation in HC. Despite AO's interpretation of indemnity clause suggesting potential compensation, ITAT held that without concrete evidence of actual indemnification and given impossibility of performance due to builder's default, the limitation period for fund utilization should be extended until HC resolves the matter. Assessee cannot be compelled to treat unutilized funds as taxable income while case remains pending. en-us Wed, 09 Aug 2023 00:00:00 +0530 Thu, 29 Aug 2024 21:49:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456982 ITAT Mumbai ruled in favor of assessee regarding exemption under sections 54 and 54F for unutilized capital gains account funds. Assessee had invested in residential property through builder who failed to complete construction, leading to pending litigation in HC. Despite AO's interpretation of indemnity clause suggesting potential compensation, ITAT held that without concrete evidence of actual indemnification and given impossibility of performance due to builder's default, the limitation period for fund utilization should be extended until HC resolves the matter. Assessee cannot be compelled to treat unutilized funds as taxable income while case remains pending. Case-Laws Income Tax Wed, 09 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456982