Deduction u/s 54 of IT Act allowable even if Old Sale Proceeds not Reinvested in New Asset Acquisition: ITAT

The ITAT ruled that a taxpayer is eligible for a deduction under Section 54 of the Income Tax Act even if the proceeds from the sale of an old property are not directly reinvested in the acquisition of a new asset. The tribunal allowed the deduction, emphasizing that the taxpayer’s intention and compliance with the overall requirements of Section 54 were sufficient. This decision offers relief to taxpayers who may not follow the conventional route of directly reinvesting sale proceeds but still comply with the law's intent.