Section 54F Exemption Not Available for Renovation or Extension of Existing House: Kerala HC

Pushpa Vs ITO (Kerala High Court)

In Pushpa v. Income Tax Officer (Kerala High Court), the Court examined whether an assessee could claim exemption under Section 54F of the Income Tax Act, 1961, for capital gains invested in renovating or extending an existing residential house. The key issue was whether such renovation could qualify as “construction of a residential house” within the meaning of Section 54F.

The assessee had sold a capital asset and claimed exemption under Section 54F, asserting that the sale proceeds were invested in modifying

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