- Although SC in Dilip Kumar custom case held where there is ambiguity in applicability of exemption clause benefit cannot be extended to assessee. On other hand SC in Vegetable Products case held ”if two reasonable constructions of a taxing provisions are possible, that construction which favours the assessee must be adopted”
- Proviso of 54F(4) refer to amount not utilised wholly or partly is taxable in year of 2/3 years expires. Whether amount partly utilised satisfies proviso and balance is not taxable? No refer P.N. Shetty case (Kar)
- Life interest in property being limited interest till life – CG on transfer of it can be exempt u/s 54F & not 54.
- Settlement of properties with settler reserving life interest is not counted as more than 1 property to deny 54F
- Land apurtenant is land which is indivisible from building and use for enjoyment of building
- Investment in name of close relative should be allowed – yes – purposive construction instead of literal construction of law
- Property purchased in joint name – exemption available – major view in favour
- Property purchased in wife name – exemption available – mix view
- Joint owning of property with family member will be considered for grant or deny exemption u/s 54F – controversial
- Property purchase from borrowed funds – exemption is available – mix opinion even by courts but more in favour
- Purchase of residential property but commercially use – exemption available – yes in S.K. Luthra case (Mum)
- Exemption is available for expenditure to make house habituated and not comfortable
- Purchase of 50% share of other Co-owner is entitle for exemption – yes in Arvinda Reddy case (SC) (1979) old case
- Construction started before transfer and completed in 3 years – exemption available – yes
- Taxpayer constructed house in 3 years but failed to deposit in CG account – exemption available – yes in Sunayana Devi / Seema Sabharwal cases
- Delay in CG bond or CG account deposit condole by CBDT u/s 119 (2) whether allowed
- Amount deposited after 139(1) but till 139(4) or 139(5) is allowed – Kilburn Engg Ltd (Kol)
- 54F being differentiated from 54 & 54EC as 54F demand for net consideration to be invested and latter demand CG to be invested
- 50C is for limited purpose of computation, does not apply to 54F but arguably apply to 54 & 54EC – debatable
- Trust is eligible to exemption even not being individual or HUF applying principle of sec 161 – Balgopal Trust case (Mum)
