In the case of 2024 (5) TMI 1094 before the ITAT Mumbai, the ...

ITAT Mumbai allowed the exemption u/s 54 for LTCG as construction not started within 3 years. AO directed to tax only unutilized amount u/s 45.

Case Laws Income Tax

May 23, 2024

In the case of 2024 (5) TMI 1094 before the ITAT Mumbai, the issue revolved around the denial of exemption claimed u/s 54 of the Income Tax Act. The Tribunal acknowledged the challenges faced by house buyers in delayed construction projects. It was noted that the assessee had utilized only a portion of the Long Term Capital Gain for a new residential house. The Tribunal directed the Assessing Officer to tax only the balance amount u/s 45, in line with the proviso to section 54(2) of the Act. The AO was instructed to allow exemption for the amount utilized for the new residential flat. Consequently, the appeal was partly allowed on this ground.

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In the case of 2024 (5) TMI 1094 before the ITAT Mumbai, the ...

ITAT Mumbai allowed the exemption u/s 54 for LTCG as construction not started within 3 years. AO directed to tax only unutilized amount u/s 45.

Case Laws Income Tax

May 23, 2024

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