2012 (3) TMI 80 - KARNATAKA HIGH COURT

Deduction u/s 54F in respect of building under construction despite the same having not being fully constructed within the stipulated period of three years for availing of the benefit – Held that:- The essence of the said provision is whether the assessee who received capital gains has invested in a residential house. Once it is demonstrated that the consideration received on transfer has been invested either in purchasing a residential house or in construction of a residential house even though the transactions are not complete in all respects and as requited under the law, that would not disentitle the assessee from the said benefit. See CIT v. Sardarmal Kothari (2008 - TMI - 30187 - MADRAS HIGH COURT)

In present case, assessee had invested in residential property within twelve months from the date of realization of sale proceeds of shares. Further, substantial construction was completed within three years period. Hence Tribunal was justified in extending the benefit of section 54F to assessee – Decided against the Revenue.