New Delhi, July 8 -- A taxpayer who sold a residential property and claimed exemption from long-term capital gains (LTCG) tax under Section 54 cannot be denied the benefit merely because construction of the new house was delayed beyond the prescribed three-year period due to the Covid-19 pandemic, the Chennai bench of the Income Tax Appellate Tribunal (ITAT) has ruled.

According to an ET Wealth report, the Tribunal allowed the taxpayer's claim after noting that the delay was caused by extraordinary circumstances during the pandemic and that the taxpayer had made a genuine investment towards constructing a residential house.

The case involved Rajan from Ambattur, Chennai, who sold his residential property in Noida on 9 July 2019 for Rs.4...