Capital gain sec.54f

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SANDIP (Querist)
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26 November 2012 I have sold residential plot of Rs.1,25,00,000 on 09/12/2009 and invested Rs.1,50,00,000 in residential plot before 31/03/2010 and constructed residential house, the Construction of which was completed before 30/09/2012, expenditure on construction amounted to Rs.65,00,000.
Am I eligible for deduction u/s 54F For Rs.1.5 Cr.+ 65 lacs.?
A.O. is of opinion that i am not eligible for deduction as i have invested entire amount of Rs. 1.25 Cr. in purchasing Plot @ Rs. 1.5 Cr. before starting construction.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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26 November 2012 For constructing a residential house, land will have to be purchased. Accordingly, amount invested for purchase of land is eligible for deduction.

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