31 October 2011
My brother sold a plot in april 2008, and capital gain of30.00 lakh was there. He purchased a residential plot in may 2008 for25.00 lakh, got the sanction plan approved on 23.03.09, invested around 5 lakh in construction up to dec. 09, but construction was stopped due to court case in high court in dec. 09, now can exemption will be allowed u/s 54f, he is not having any residential property other then mentioned above. any case law regarding the same
02 November 2011
In my view Section 54F is enforceable to the extent net consideration on the sale of old plot equates/proportionates to purchase as well as construction cost/value of NEW ASSET within the specified period or time limit. The matter of hault in construction process due to court proceedings should not debar from availing the provisions/concessions under section 54F, in my view.
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