A taxpayer sold his residential flat in Ahmedabad in the financial year 2008-09 for Rs 13.50 lakh. This flat was acquired in FY 1995-96 for Rs 4.01 lakh. In his return of income, the taxpayer claimed exemption u/s 54 of the Income Tax Act (‘the Act’) on account of his purchase of a property in a scheme of residential flats (‘the said scheme’) as available then.
