Exemption u/s 54 f (urgent)

This query is : Resolved

Krishan Kumar Goyal (Querist)
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13 March 2014 Dear Sir,

please clear me if any person sold his home in a.y. 2011-2012 and invest this sold amount in any residential project (just like jp or earth infrasture) which possession time is in 2015 may he get exemption u/s 54 f or not

Thanks in Advance

Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 March 2014 Goyal ji normally tax authorities take a lenient view where there are delays in possession.

What stand they may take if it is known well in advance that possession shall be beyond 3 years is something you can only speculate on.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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14 March 2014 Issue is covered u/s 54 and not under 54F.

However, assessee is entitled to exemption u/s 54. The following decision can be relied , though delivered u/s 54F.

CIT Vs. Sardamal Kothari (2006) 302 ITR 286.

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Krishan Kumar Goyal

Krishan Kumar Goyal (Querist)
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21 March 2014 Dear Sir,

Please clear me that assessing office is bound to follow the ruling or he may use his discretion or reject the exemption of u/s 54

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 March 2014 He may reject as often tax officers do. But appellate level you can expect relief