30 May 2013
can assessee partialy invest the ltcg in purchase of new house and partially in construction of floor above that new house..would he will be able to get exemption for both or for else?
30 May 2013
your case is same as the decided case of sarkar(BB) v CIT (1981) 132 ITR 661 (Del). It was held that where the assessee had partly invested the capital gains on the purchase of another house and partly on the construction of additional floor to the same purchased house within prescribed time limit, exemption should have been granted on both purchase and construction. Therefore you will be allowed exemption u/s 54 for both purchase as well as construction.
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