Investment in residential plot qualifies for Section 54F deduction: ITAT Delhi

Prem Raj singh Vs ITO (ITAT Delhi)

Background and Assessee’s Claim

The assessee, Prem Raj Singh, sold an urban agricultural land for Rs. 1,38,55,220 and claimed a long-term capital gains exemption of Rs. 1,15,82,887 under Section 54F. This exemption was claimed on the grounds that the proceeds were invested in a residential plot. However, the Income Tax Officer (ITO) denied the exemption, arguing that Section 54F requires investment in a “residential house” and not just a plot

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