section 54F

The conditions of Sec 54F are stated hereunder:

"Provided that nothing contained in this sub-section shall apply where—

[a] the assessee,—

[i] owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or

[ii] purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or

[iii] constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset; and

[b] the income from such residential house, other than the one residential house owned on the date of transfer of the original asset, is chargeable under the head "Income from house property"."

Here Original Asset = Property B and New Asset = Property C

Now as on the date of Sale of Property B, Mr. X owns one property i.e. Property A other than Property C, so condition 1 is specified.

Further with regard to 2nd condition, Mr X will not be having any income from property C and as such even the 2nd condition is fulfilled.

Thus, in my opinion, Mr. X is eligible for exemption u/s 54F provided all other conditions are satisfied.

For any further clarification, feel free to mail me at mnshdugar @ gmail.com

thank you very much sir