On appeal before the Tribunal, it was held that the new asset was under construction and cannot be said residential house owned by the assessee. The Tribunal also held that, there was no bar in the u/s. 54F of the Act for claiming deduction more than once for the same house property (new property), if the cost of the new property is within the capital gain that arose to the assessee. (ITA No. 5254/Del/2014) (AY. 2011-12)
ACIT v. Mohinder Kumar Jain (2017) 62 ITR 176 (Delhi) ( Trib.)
S. 54F : Capital gains – Capital gains on sale of house properties can be invested in construction of house property more than once for same new property, if cost of property is within capital gains that arose to the assessee. [ S.45 ]
Why has the court mentioned that “if the cost of the new property is within the capital gain” then exemption u/s 54F can be claimed when 54F directs to invest the net consideration not the capital gains? Seems to be an apparent error.