an assessee has sold 3 different assets in 3 different f.y (capital gain say for rs. 1 cr. each). he started constructing a singly residential house property after sale of the first asset sold. the house is still under construction. the estimated expenditure is rs. 5 cr. can the assessee claim exemption on all the three houses u/s 54f against the construction of the single residential house. plz give reference to relevent case laws.
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exemption u/s 54F
Replies (1)
In the case you mentioned the assessee can claim the exemption from one residential house only for all the 3 assets sold.
But he will have to make sale of all the 3 assets in such a way that the time limit mentioned in the act i.e. construction should be complete before 1 year of sale or after 3 years.
And IT authorities also cannot contend that assesee already owns 2 residential houses at the time of sale, cos until and unless the contruction of house is completed it cannot be used for residing there and so would not be called a residential house.
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