Assessee had booked a semi-finished residential flat with builders in 2006 and AO had denied Section 54 benefit to assessee in AY 12-13, by applying

the one year time limit applicable to ‘purchase’ of property. ITAT held that booking of the flat with the builder has to be treated as construction of flat by the assessee. Assessee had booked bare shell of a flat, with requirement to make periodic payments and she had to carry out the internal fit-outs to make the flat habitable within 6 months of receipt

of occupation certificate. Thus assessee had 3 years’ time period from date of sale of original asset to construct the new house property and present case

was not a case of ‘purchase of flat’ but was a case of ‘construction of flat’.