A bear reading of section 54 will mean the asset sold should be capital asset consisting of buildings and land appertant thereto. The world buildings indicate that even if more than one house the gain can be reinvested to get examption. However the investment is restricted to one house only. The karnataka High courts decison referred to above also proves this stand that the re investment should be made in one house only. In that case the assesse purchsed two units and before that thery were amalgamated to one unit before purchase hence it was taken as one house. I do not know wheter two separate purchase deed were made on one single deed made. If two deeds then the position changes.
Thefore the answer to the query is exemption is available for re ivestment in respect of one purchse only
it is immatereial tht you own more than one house after re investment and you also own another house.
advocae - retired income tx officer