03 June 2014
assessing officer informed that no exemption is alowed when the residential house is purchased which is not a new building. i mean ready residential house purchased by the assessee which is of 6 years old house. other condition of the asset satisfied
can some one please share view on this denial.
03 June 2014
I think the intention in the provision of section 54F is purchase of new residential unit by the assessee. New here means new for the assessee and not the new construction as misunderstood by the assessing officer. So, in my opinion , the contention of the AO is not correct. you can claim exemption for purchase of residential house which is 6 years old but purchased by the assessee in the current financial year in which exemption is claimed
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