Landmark Cases on Capital Gains

The Supreme Court in CIT v. Ashokbhai Chimanbhai [1965] 56 ITR 42 (SC) is cited for principles related to the computation of capital gains, specifically in the context of slump sales.

An assessee is entitled to relief under Section 54F for the purchase of a new residential property if an agreement to sell the old property was executed and the new property was purchased within one year of that agreement, even if the sale deed for the old property was not executed within the prescribed time. Section 54F is a beneficial provision and should be interpreted liberally.

When computing exemption under Section 54F, the Assessing Officer cannot adopt a deemed consideration based on Section 50C if the assessee has already invested the sale proceeds in property.