Section 54F Deduction Allowed Despite 31-Day CGAS Deposit Delay: ITAT Delhi

ITO Vs Vinod Gugnani (ITAT Delhi)

Income Tax Appellate Tribunal (ITAT), Delhi Bench, has dismissed an appeal filed by the Revenue against Vinod Gugnani for the assessment year 2016-17, affirming the deletion of an addition amounting to Rs. 5,70,95,075/- under Section 54 of the Income-tax Act, 1961. The Tribunal’s decision reinforces the principle that the substantive compliance of investing capital gains in a new residential property within the stipulated period takes precedence over a procedural delay in depositing the funds into the Capital Gains Account Scheme (CGAS).

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