ITAT Clarifies Section 54F: Rs 26 Cr Capital Gain Exemption Allowed

• The Income-Tax Appellate Tribunal (ITAT), Kolkata, allowed Saroj Goenka to claim a Rs 26 crore capital gain exemption from selling Emami Ltd shares.
• Goenka invested over Rs 53.86 crore in a new residential property at 1, Queens Park, Kolkata, completing construction within three years.
• The ITAT rejected the tax department's objections regarding prior property ownership, construction start time, and direct use of sale proceeds.
• It clarified that Section 54F does not bar exemption if construction begins before sale or if sale proceeds are not directly used for the new house.
• The tribunal also dismissed claims of a 'colourable device,' stating the shares were gifted by the husband's brother, not the husband.