Referring to the decision of Hon’ble Delhi HC in  CIT v.Bharti Mishra ( 2014) 98 DTR 1 ( Delhi) (HC)) the ITAT observed that for the satisfaction of condition u/s 54, it was not necessary that the construction of new house must begin after the date of sale of the original/old asset and that there was no condition or reason for ambiguity and confusion which would require moderation or reading the words of the said section in a different manner. Further reference was also made in this regards by the tribunal to the decision of Allahabad HC in CIT v. H.K. Kapoor ( 1998) 234 ITR 753 ( All) (HC)). Relying on the decision of Hon’ble SC in CCE v. Favourite Industries (2012)7 SCC 153  the tribunal noted that the beneficial provisions must be liberally interpreted. Accordingly, the tribunal allowed the claim of deduction u/s 54 in respect of payments made before the date of sale of original house.

Further, in regard to the deposit made in the capital gain scheme beyond the due date of filing return u/s 139(1), relying on the decision of P&H HC in CIT v. Jagrati Aggarwal (Ms)  ( 2011)339 ITR 610 ( P& H) (HC) the tribunal held that the assessee, having deposited the amount in the capital gain scheme within the extended period allowed by section 139(4) was eligible to claim deduction u/s 54. In result appeal of the assessee was allowed by the tribunal.