Section 54/54F – Amount paid towards booking is to be treated towards ‘construction’

Advertisement CA Sandeep Kanoi Coming to a concomitant situation that if booking of flats does not tantamount to ownership of the house then how come the assessee claim that by booking a flat it has acquired ‘new house’ and becomes entitle for this exemption. Similar situations repeatedly arose and to settled them, the CBDT issued a circular No. 471 dated 15/10/1986 clarifying that payment made to a builder/developer is a sufficient compliance for exemption under section 54F of the Act. Ld. CIT(A) has gone by sheer technicalities to hold that the flat at Emaar-MGF, Gurgao...