The assessee claimed exemption under section 54F on the investment of long-term capital gains arising from the sale of development rights in the purchase of a residential house. The Assessing Officer denied the exemption on the grounds that the memorandum of understanding was unregistered, the seller owned only three-fourths of the property, the parties were related, and the registered sale deed was executed after two years. The Tribunal held that the entire consideration had been paid pursuant to the memorandum of understanding, the subsequent sale deed referred to the earlier agreement and the seller’s ownership of three-fourths share was undisputed. The delay in the execution of the sale deed and the relationship between the parties did not render the transaction non-genuine. Accordingly, the assessee was entitled to a deduction under section 54F. (AY. 2015-16)