Section 54-Booking of flat with builder- Purchase or construction?

ACIT Vs Vineet Kumar Kapila (ITAT Delhi) Competent courts have held that the flats constructed by the private developers are also covered by Circular No. 471 & 672 and, therefore, entitled for deduction u/s. 54. The moot question is whether the agreement with builder to purchase a flat that is going to be constructed, is the case of purchase or construction. In this regard Hon’ble High Court of Mumbai in the case of Hilla J.B. Vadia 216 ITR 376 held that it is a case construction. Further, on identical question, i.e. whether the booking of flat with the builder is to be considered a...