V Harish (Staff) 14 December 2010
Friends,
A person who has sold a house property and invested the same in two units on the same flat (one on the first floor and another on the second floor) to claim exemption u/s 54 of the Income Tax Act, 1961. The dispute now is whether he qualifies for exemption for investing in both of them or not? Please suggest/quote the supporting case laws at the Supreme Court/HIgh Court (Tamil Nadu Jurisdiction) Level in favour of assessee.
With Regards
V Harish
shammi kumar (tax consultant) 18 December 2010
A person can invest more than one unit , sec 54 does not bind numerical strength and about case am not sure...........................................................
S.K. GAIND
ADVOCATE
Vineet (Director) 24 December 2010
Exemption u/s 54 is available in respect of only one residential unit if both units are seperate. Refer Bombay High Court decision in case of K C Kaushik vs P B Rane ITO 185 ITR 499.
Howevr, if both units on 1st and 2nd floor are joined from inside and can be proved as one single residential unit, exemption will be available in respect of both units. ACIT vs Leela Nanda (ITAT Mumbai) 286 ITR 113
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