Section 54

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2013 Sir,
An assessee sold a house property and purchase a new house property on loan (housing loan), my query is weather such capital gain is exempt under section 54 or not because he has take loan on new house property.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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26 February 2013 Yes, exemption can be claimed.

Citation :- CIT vs. K. C. Gopalan, 162 CTR 566 wherein, Kerala High Court ,in principle ,held that in order to get benefit of section 54, there was no condition that the assessee should utilise the sale consideration itself for the purpose of acquisition of new property.

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