Assessee sold land to a builder.   In addition to sale consideration in money form , there was a parallel understanding to receive additional consideration , in kind, of   a ready made flat in the builders project on the same land   . Though there was no agreement for flat but there was  an escrow document   Assessee  in its return declared sale consideration received as well as value of flat receivable and claimed exemption u/s 54F towards value of flat receivable. AO rejected claim u/s 54F on ground that builder denied to have agreed to give any flat in kind and hence under 54F the criteria of having purchased flat failed. On appeal the ITAT held that   due to disputes between Assessee  and builder this issue of allotment went to court and High Court  recognised the validity of escrow and thus  the allotment has the Court acceptance though case not finally decided .  If AO is taxing the deemed value of flat as sale consideration then it is deemed that Assessee  has paid the full value of consideration as required under 54F of the Act .  Since Assessee  has performed his part of duty by disclosing the sale prior to its receipt , then it is deemed on the part of the AO to allow deduction on the same , despite the Dispute or delay in getting the flat . Accordingly the  exemption u/s54F of the Act is allowed . (ITA No . 3642 /M/ 2017 /ITA no. 3888/M/2017  Bench “E”   dt -1-6  .2021 ) ( AY. 2012 -13 )