ITAT Allows Section 54F Deduction as Substantial Construction & Habitable House Were Established

Narayan Swaroop Garg Vs DCIT / ACIT (ITAT Jaipur) The appeal before the ITAT Jaipur concerned whether the assessee was entitled to a deduction of ₹1.73 crore under Section 54F of the Income Tax Act, 1961. The assessee had sold a property and claimed deduction under Section 54F on the ground that the capital gains were invested in the purchase of a residential plot and the construction of a residential house. The Assessing Officer denied the claim, holding that the construction was not completed within three years from the date of sale of the original property. Field inquiries and photographs...