CIT v. K. Ramachandra Rao
What is CIT v. K. Ramachandra Rao authority for?
The exemption under Section 54F (or Section 54) for long-term capital gains cannot be denied if the assessee invests the entire sale consideration in constructing a residential house within the prescribed three-year period, even if the amount was not deposited in the Capital Gains Account Scheme before the due date for filing the income tax return under Section 139(1). The purpose of the Capital Gains Account Scheme is to preserve the exemption when actual investment is pending, not to deny it if actual utilization occurs within the statutory timeframe.
judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2016 to 2026.
Also referred to as
CIT v. K. Ramachandra Rao · Section 54F exemption · Section 54 exemption · Capital Gains Account Scheme · due date of return filing · Section 139(1) · actual investment in residential house · long term capital gains exemption · Section 54F(4) · construction of house property · denial of exemption · capital gains scheme deposit
