Section 54F relief cannot be denied to assessee when he has invested entire sales consideration in purchase of residential house but he is unable to get possession of flat, which is under construction, due to fault of builder.
The issue before the ITAT was:
Whether Section 54F relief could be denied when assessee was not able to get the title of the flat or unable to get possession of the flat, which was under construction, due to fault of the Builder?
The ITAT held as under :
1) It was a fact that the assessee had invested amount in purchase of residential house within the stipulated period prescribed u/s 54F of the Act. But, it was not in the assessee’s hand to getthe flat completed or to get the flat registered in his name, because it was incomplete.
2) The intention of the assessee was very clear that he had invested almost the entire sale consideration of land in purchase of this residential flat. It was another issue that the flat could not be completed and the matter was pending before the Hon’ble Bombay High Courtseeking relief by the assessee by filing suit for direction to the Builder to complete the flat.
3) It was impossible for the assessee to complete other formalities, i.e., taking over possession for getting the flat registered in his name and this could not be the reason for denying the claim of the assessee for deduction u/s 54 of the Act. Thus, assessee was entitled for deduction under Section 54F. -  71 taxmann.com 198 (Mumbai - Trib.)