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Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2011 I had sold my plot in Mar 2010 and booked a new flat in Mar 2010 itself for full sale consideration amount. However, due to delay in the project, it is not likely to be completed by Mar 2012. Can someone highlight the IT rules implications if the project was to continue beyond Mar 2012 (2 yrs). Also what is the wisest thing that I should do in this situation which is within the ambit of IT rules. Thank you.

DR GAURAV GUPTA FCA, FCS, LL.B

DR GAURAV GUPTA FCA, FCS, LL.B (Expert)
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13 March 2011 AS PER SEC 54H U CAN REQUEST INCOME TAX DEPTT FOR THE EXTENTION OF TIME

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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13 March 2011 Disagree with the observation of Gupta Ji because 54H is for compulsory acqusition alone whereas the query is covered under section 54F of the Income tax Act,1961.
However the assessee will not loose the benefit of 54F in view of the following decisions.
1) ACIT Vs. Ms.Sunder Kaur Sujan Singh (2005) 3 SOT 206 (Mum).
2)Ms. Seetha Subramanian Vs. ACIT 59 ITD 94 (Mad-Tri).

The crux of these decisions are:-

As the assessee has substantially completed all the work of construction and has invested the entire net consideration, it has to be inferred that the assessee has complied with the conditions provided under section 54F though construction is not completed with in the stipulated time prescribed in the said section.

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