ITAT Pune Grants Full Tax Exemption on Rs 3.21 Crore Land Sale Despite CGAS Deposit Issue

The Income Tax Appellate Tribunal (ITAT) Pune granted full tax exemption to Mr. Gugale from Baramati after he sold land for Rs 3.21 crore and invested the proceeds in a residential property. Although he did not fully deposit the sale proceeds into the Capital Gains Account Scheme (CGAS) before filing his income tax return, ITAT ruled that Section 54F exemption applies if the entire amount is invested in a house. This aligns with a similar Karnataka High Court ruling, emphasizing legislative intent to encourage housing investment despite procedural lapses.