Capital gain u/s 54f

This query is : Resolved

Pankaj Singhal (Querist)
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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

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
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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.