S.54F Deduction Fully Allowable on Capital Gains Reinvestment with Proforma Purchaser: ITAT

The ITAT ruled that a taxpayer is entitled to a Section 54F deduction on capital gains, even if the reinvestment is made with a proforma purchaser. The tribunal held that the deduction should not be denied merely because the sale deed is not executed in the taxpayer's name, provided the taxpayer has made actual investments in new property. This ruling is a significant relief for taxpayers, emphasizing that substantive compliance with reinvestment requirements is enough to claim deductions.