Section 54F exemption eligible despite dispute or delay in getting flat

Vinay Ramchandra Somani Vs ACIT (ITAT Mumbai)

We notice that the assessee has sold the residential land and entered into a separate deal with the buyer for allotment of a flat in the up–coming project. The part sale consideration received by the assessee as payment in kind. In that process, the assessee entered into an escrow arrangement with Satguru Corporate Services Pvt. Ltd., against the allotment of new flat. As per escrow arrangement, the assessee made full payment against the allotment of the flat.

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