Section 54 does not mandate utilization of sale consideration from original asset

Phillip Koshy Vs DCIT (ITAT Delhi) The case of Phillip Koshy vs. DCIT (ITAT Delhi) revolves around the interpretation of Section 54 of the Income Tax Act and the eligibility for exemption despite the start of construction of a new house before the sale of the old one. The appellant sold two properties and claimed deduction under Section 54 of the Act for the purchase of a new property in Bangalore. However, the assessing officer (AO) restricted the deduction claimed and denied it partially on the grounds that some payments were made after the sale of the properties and the construction cost wa...