Acquiring flat from builder where construction to be done in phased manner is case of “purchase” for sec. 54F relief

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Acquiring flat from builder where construction to be done in phased manner is case of “purchase” for sec. 54F relief

[2019] 108 taxmann.com 299 (Delhi – Trib.)/[2019] 72 ITR(T) 353 (Delhi – Trib.)
I Where assessee having sold shares, entered into an agreement with a builder for purchase of new residential flat which was constructed by builder in phased manner and payment of which was linked to stage of construction, it was a case of purchase and not construction of new asset and, therefore, assessee was to be allowed deduction under section 54F
Where assessee sold shares and entered into an agreement with a builder for purchase of new residential flat which was constructed by builder in phased manner, assessee would be entitled to benefit of deduction under section 54F despite fact that construction activities of new flat had started before date of sale of original asset
Kapil Kumar Agarwal

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