No deduction u/s 54 is allowed where assessee has constructed a house prior to the date of transfer of original house

Brief of the case: The sole issue to be decided by ITAT is that whether the transaction of entering into an agreement with a builder for purchase of a flat that is going to be constructed is a case of “Purchase” or “Construction”. In the instant case, the assessee has constructed a house prior to the date of transfer of original house, in which case, the assessee is not entitled to claim deduction u/s 54 of the Act in respect of the cost of new flat. Brief facts: The facts that are relevant to the issue under consideration are that the assessee sold a flat located at Fionika on 27.03...