Sec. 54 deduction available on purchase of flats even if investment was not made out of sale proceeds

Neelam Nananni Vs ITO (ITAT Mumbai) Conclusion: Deduction under section 54 was available on purchase of  new flats by assessee from long-term capital gain earned on sale of old asset even if investment was not made out of the proceeds of capital gain. Held: Assessee earned a long-term capital gain on the sale of immovable property and claimed deduction under section 54 towards investment made in purchase of new flats.  AO disallowed assessee’s claim of deduction under section 54 of the Act on two grounds -firstly, the flat was purchased in financial year 2003-04 relevant to assessment year...