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Mar 07, 2026
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Man sold land for Rs 3.21 crore, denied tax relief under Section 54F: Why ITAT Pune allowed full tax exemption
The Income Tax Appellate Tribunal (ITAT) Pune on February 19, 2026 gave full tax exemption to Mr Gugale from Baramati, Pune after he sold his land for Rs 3.21 and used this money to buy a house. He had to go and file a case in ITAT Pune as the Income Tax
Department had initially denied his tax exemption claim under Section 54F because he made a crucial technical mistake of not fully depositing the land's sale proceeds in a special bank account called 'Capital Gains Account Scheme (CGAS) before filing his income tax return (ITR).
ITAT Pune held that Section 54F exemption cannot be denied when sale proceeds are fully invested in a house, even if not fully deposited in the capital gains account before filing the return. The Karnataka High Court reached the same conclusion in a similar case (case no: CIT vs. Ramchandra Rao [2015] 56 taxman.com 163).
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