In a significant ruling, the Income Tax Appellate Tribunal (ITAT) Delhi clarified the application of Section 54F of the Income-tax Act, 1961, regarding capital gains tax exemptions. The case involved Mr. Bansal from Badarpur Khadar, Delhi, who sold unlisted shares for ₹7.88 crore, realizing a capital gain of ₹7.59 crore. He subsequently invested ₹5.65 crore in a residential property and claimed an exemption under Section 54F. The tax authorities initially denied this exemption, citing various reasons including the timing of the investment and alleged ownership of multiple properties. However, the ITAT ruled in Mr. Bansal's favor, stating that the requirement to deposit in the Capital Gains Account Scheme applies only if the sale proceeds are not utilized before filing the Income Tax Return (ITR). The tribunal also clarified that Mr. Bansal's ownership of a 1/3rd share in a property did not violate the stipulation of owning no more than one residential house, as it constituted a single unit with his brothers. This ruling underscores the importance of utilizing funds for property purchases before filing the ITR to qualify for tax exemptions.