Sale Agreement with Possession Qualifies for Section 54F Exemption

Arvindbhai Ramniklal Raval (HUF) Vs ITO (ITAT Surat) The Income Tax Appellate Tribunal (ITAT) Surat, in the case of Arvindbhai Ramniklal Raval (HUF) vs. ITO, has ruled that an assessee is eligible for a deduction under Section 54F of the Income-tax Act, 1961, even if a registered sale deed for the new residential property has not been executed, provided there is a valid purchase agreement with possession. This decision overturns the disallowance made by the Assessing Officer (AO) and upheld by the Commissioner of Income-tax (Appeals) [CIT(A)]. The case involved an assessee who sold land and cl...