Section 54F exemption cannot be denied for start of construction prior to transfer of original asset or for construction on commercial land

ITO Vs. Smt. Saroj Devi Agarwal (ITAT Jaipur)

Revenue has not brought any material on record suggesting that on commercial land no residential house can be constructed. Even there is no material suggesting that any unauthorized construction by the assessee would debar it from claiming exemption under sections 54F. In the absence of such material, in our considered view benefit of section 54F cannot be denied. Another objection of the assessing officer is with regard to the fact that construction of residential

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