Additions or improvements eligible for sec. 54F relief

Cost of additions or improvements on habitable house is also eligible for sec. 54F relief

HIGH COURT OF KARNATAKA

Mrs. Rahana Siraj

v.

Commissioner of Income-tax-I, Bangalore

N.KUMAR AND B. VEERAPPA, JJ.

IT APPEAL NO. 232 OF 2013

JANUARY  5, 2015 

Section 54F of the Income-tax Act, 1961 - Capital gains - Exemption of, in case of investment in residential house (Cost of additions/improvements) - Assessment year 2005-06 - Whether if assessee purchases a new asset, which is habitable but requires additions, alternations, modifications and improvements, money spent on those aspects would be eligible for benefit of deduction under section 54F - Held, yes [Para 8] [In favour of assessee]