Deduction u/s 54F was allowable even if construction of new house commenced before sale of capital asset

CIT Vs K Ramachandra Rao (Karnataka High Court) Conclusion: Assessee was entitled to claim deduction under section 54F as investment in putting up a residential construction could be made on a site owned by him to be eligible for exemption and if the intention was not to retain cash but to invest in construction or any purchase of the property and if such investment was made within the period stipulated therein, then Section 54F(4) was not at all attracted and exemption was allowable. Held: Assessee computed Long Term Capital Gains before claiming exemption under Section 54B and 54F. During t...