*The Income Tax Appellate Tribunal (ITAT) Delhi Bench has ruled in favor of an assessee,* Rikant Pittie, allowing renovation expenses incurred within the extended deadline set by the Central Board of Direct Taxes (CBDT) to qualify for deduction under Section 54F of the Income Tax Act. Pittie had sold shares of Easy My Trip Planners Ltd in March 2021, resulting in substantial long-term capital gains. To claim relief under Section 54F, which allows exemption from capital gains tax if the proceeds are invested in a new residential property, Pittie purchased a residential house in Gurgaon and incurred significant renovation expenses. The ITAT accepted Pittie's argument that the CBDT's circulars (No. 12/2021 and 1/2023) extended the deadline for making investments or payments for claiming exemptions under Section 54 to 54GB due to the COVID-19 pandemic. The CIT(A) had carefully examined the bills and payments made by Pittie and allowed the claim for deduction under Section 54F to the extent of ₹36.07 crore, excluding certain amounts spent on air conditioning and furniture. The ITAT upheld this decision, ruling that renovation expenses incurred within the extended deadline are eligible for deduction under Section 54F . *Key Points:* - *Extended Deadline*: CBDT's circulars extended the deadline for investments or payments for claiming exemptions under Section 54 to 54GB to March 31, 2023. - *Eligible Expenses*: Renovation expenses incurred within the extended deadline qualify for deduction under Section 54F. - *Partial Allowance*: The CIT(A) allowed the claim for deduction under Section 54F to the extent of ₹36.07 crore, excluding certain amounts spent on air conditioning and furniture. - *Relevant Precedents*: Similar rulings have been made in other cases, such as the ITAT Bengaluru bench, which held that cost incurred on alteration/renovation on a purchased unit is eligible for capital gain exemption under Section 54F . "Share this update with others and stay updated by following the WhatsApp channel!" *Follow the VEM : VAPS®-EPSCON-MKJ channel on WhatsApp:* https://whatsapp.com/channel/0029Va555c5JJhzdOhLadx3B