Section 54 deduction allowed on Advance paid for Purchase of Property Prior to Sale of Old Capital Asset

Moturi Lakshmi Vs. ITO (Madras High Court) The issue under consideration is whether the advance to the seller of flat prior to the date of sale of old capital asset will be eligible for claiming deduction u/s 54 under capital gains? High Court states that the entire scheme of Section 54 of the Act was explained and it was held that there was no prohibition for the assessee for putting up construction out of the sale consideration received by such transfer of site, which was owned by him as it was clear from the language of the provision. It was further held that though the original asset was s...