Sale of booking rights of flat couldn’t be treated as sale of residential house; sec. 54F relief available

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Sale of booking rights of flat couldn’t be treated as sale of residential house; sec. 54F relief available 

[2019] 102 taxmann.com 228 (Bombay)
 
IT : Where assessee had booked a flat far back in January, 1981 and till time, she sold her rights in flat in year 2005, completion of construction was nowhere in sight it was not a case of sale of residential property and thus assessee’s claim for deduction under section 54F in respect of capital gain earned from sale of her right in said flat was to be allowed
 
Section 54F of the Income-tax Act, 1961 – Capital gains – Exemption of, in case of investment in residential house (Residential flat) – Assessment year 2006-07 – For relevant year, assessee filed her return wherein deduction was claimed under section 54F in respect of sale of a capital asset – Assessing Officer rejected assessee’s claim on ground that assessee had sold a flat which was in nature of residential unit and therefore, section 54F would not apply – Tribunal noted that assessee had booked a flat far back in January, 1981 and till time, she sold her rights in flat in year 2005, completion of construction was nowhere in sight – Tribunal thus taking a view that it was not a case of sale of residential property, allowed assessee’s claim for deduction – Whether, on facts, no substantial question of law arose from Tribunal’s order – Held, yes 
 
Kalpana Hansraj
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