Capital gains exemption

This query is : Resolved 

27 October 2016 Mr. ABC sold a residential property for Rs.35 lakhs and bought land for Rs.48 Lakhs for the purpose of construction of house property.

Will he be disallowed exemption under 54 as the amount is spent only on land?

He is intending to construct a house on the said property.

Please help me out!!!!

27 October 2016 purchase of mere land per se does not entitle the assessee to claim exemption u/s 54.
The assessee has to construct a residential HOUSE within a period of 3 years, else exemption will be withdrawn.
(Please note, the section does NOT say anything about size of house. It also does not say anything about type of house viz, cement concrete, load bearing etc.....)


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