Section 54F Exemption Allowed Despite Non-Deposit in CGAS if Funds Utilized in Time

Ramaiah Dorairaj Vs ITO (ITAT Bangalore) Income Tax Appellate Tribunal (ITAT) Bangalore has ruled in favor of Ramaiah Dorairaj, an assessee, allowing his claim for deduction under Section 54F of the Income Tax Act, 1961, despite his failure to deposit the net sale consideration into a Capital Gains Scheme Account. The Tribunal held that if the assessee ultimately invests the net sale consideration in the construction of a new residential house within the stipulated period, the deduction cannot be denied merely for non-compliance with the interim deposit requirement. The case has been remitted ...