Section 54f

Originally posted by : Arunav Majumdar
	If the assessee has sold a freehold land in A.Y. 12-13 and died after the transaction took place without depositing  any sum in the capital gain a/c scheme and hence capital gain attracted during the year under consideration. So to get exemption u/s 54F whether purchase or construction of House property in the name of legal hier will entitle the assessee to claim exemption u/s 54F?  Pls reply soon....

The Hon'ble Delhi High Court in the case of CIT vs. Ravinder Kumar Arora (2011) 42(1) ITCL 0498 following the principles laid down by the Hon'ble Andhra Pradesh High Court in the case of Late Mir Gulam Ali Khan vs. CIT held that the language of section 54F does not mandate that the house property should be purchased in the name of the assessee alone. The Hon'ble Delhi High Court held that the word "assessee" must be given wide and liberal interpretation so as to include his legal heirs also as held by the Hon'ble AP High Court in the case of Late Mir Gulam Ali Khan. The Hon'ble Delhi High Court further held that language contained u/s 54F(1) is pari materia with section 54 of the Act.
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[The A P High Court in the case of Late Mir Gulam Ali Khan vs. CIT (165 ITR 228) while examining the allowability of exemption u/s 54 of the Act held that the word 'assessee' must be given a wide and liberal interpretation so as to include his legal heirs also.]

if someone sold aggriculturial land of rs 1cr and generates a profit of rs 40l,,now he purchase another agricultural land of rs60lakhs,,,so shall he claim the balance profit u/s 54f or not???

reply fast

U/S54B HE CAN CLAIM THE DEDUCTION OF 40L