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Tax Publishers Vijay Kumar Wanchoo v. ITO [I.T.A. No. 4210/Del./2019, dt. 7-7-2020] : 2020 TaxPub(DT) 2799 (Del.-Trib.) Reinvestment benefit under section 54 -- Allowability -- Assessee selling two houses and acquiring one residential property *Facts:* Assessee sold two adjoining flats which was used by him as residence and purchased a new residential property and claimed reinvestment benefit under section 54. This was negated by lower tax authorities citing that the sale was for two units and purchase was for one unit thus not eligible for section 54 benefit. On higher appeal by assessee -- Held in favour of assessee. There is nothing restricting in section 54 to grant reinvestment benefit in case sale is of more than one residential house property -- it is the reinvestment which should be in one house so as to avail the benefits of the said section. *Applied:* (i) Order of ITAT, Mumbai 'D' Bench, Mumbai in I.T.A. No. 5547/Mum./2011, dated 29-6-2012 in the case of ACIT-18(1), Mumbai v. Shri Dinesh A. Vora, Mumbai. (ii) Order of ITAT, Mumbai 'A' Bench, Mumbai in I.T.A. No. 7443/Mum./2002, dated 22-6-2012 : 2012 TaxPub(DT) 2528 (Mum-Trib) in the case of DCIT v. Shri Ranjit Vithaldas. It does not make a difference if the sale is done on a single agreement or by way of different agreements -- it is the purchase in one property which matters for section 54.

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Vijay Kumar Wanchoo v. ITO [I.T.A. No. 4210/Del./2019, dt. 7-7-2020] : 2020 TaxPub(DT) 2799 (Del.-Trib.)

Reinvestment benefit under section 54 -- Allowability -- Assessee selling two houses and acquiring one residential property

Facts:

Assessee sold two adjoining flats which was used by him as residence and purchased a new residential property and claimed reinvestment benefit under section 54. This was negated by lower tax authorities citing that the sale was for two units and purchase was for one unit thus not eligible for section 54 benefit. On higher appeal by assessee --

Held in favour of assessee. There is nothing restricting in section 54 to grant reinvestment benefit in case sale is of more than one residential house property -- it is the reinvestment which should be in one house so as to avail the benefits of the said section.

Applied:

(i) Order of ITAT, Mumbai 'D' Bench, Mumbai in I.T.A. No. 5547/Mum./2011, dated 29-6-2012 in the case of ACIT-18(1), Mumbai v. Shri Dinesh A. Vora, Mumbai.

(ii) Order of ITAT, Mumbai 'A' Bench, Mumbai in I.T.A. No. 7443/Mum./2002, dated 22-6-2012 : 2012 TaxPub(DT) 2528 (Mum-Trib) in the case of DCIT v. Shri Ranjit Vithaldas.

It does not make a difference if the sale is done on a single agreement or by way of different agreements -- it is the purchase in one property which matters for section 54.