A recent ruling by the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has come as a major relief for taxpayers who invest their capital gains in a house but face delays in getting possession because of the builder. The tribunal held that a taxpayer cannot be denied tax exemption under Section 54F of the Income Tax Act merely because possession of the residential property was delayed due to reasons beyond their control, provided the investment was made within the prescribed timelines. The ruling is particularly relevant for homebuyers who have sold assets such as shares and invested the proceeds in a residential property to save capital gains tax.