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The Tax Publishers2013 TaxPub(DT) 1290 (AP-HC) : (2013) 053 (I) ITCL 0261 : (2013) 352 ITR 0418 : (2013) 260 CTR 0219 : (2013) 089 DTR 0386 Income Tax Act, 1961 --Capital gains--Deduction under section 54 Deduction whether allowable where two separate flats purchased--Assessee sold an ancestral house property and offered long term capital gain after claiming exemption under section 54 in respect of purchase of two adjacent residential flats. Assessing officer was of the view that deduction under section 54 is allowable only for one residential house and not for more than one residential house. Commissioner (Appeals) held that since assessee had purchased two flats having adjacent kitchens and toilets which have a common meeting point, he was entitled to 100 per cent, deduction under section 54 for both the flats purchased by him. Tribunal held that even though flats are located at different floors, when they could be combined, it should be construed as a single residential accommodation only; *Held:* since assessee had purchased two flats having adjacent kitchens and toilets which have a common meeting point, he was entitled to 100 per cent, deduction under section 54 for both the flats purchased by him. Income Tax Act, 1961 Section 54 In The Andhra Pradesh High Court Goda Raghuram & M.S. Ramachandra Rao, JJ. CIT v. Syed Ali Adil ITTA No. 410 of 2012 20 December, 2012 Appellant by : B. Narasimha Sarma, Senipr Standing Counsel Respondent by : None JUDGMENT *M. S. Ramachandra Rao, J.* This appeal is filed under section 260A of the Income Tax Act, 1961 (for short 'the Act'), by the Revenue challenging the order dated 9-9-2011 in I.T.A. No. 284/Hyd/2011 of the Income Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2013 TaxPub(DT) 1290 (AP-HC) : (2013) 053 (I) ITCL 0261 : (2013) 352 ITR 0418 : (2013) 260 CTR 0219 : (2013) 089 DTR 0386

Income Tax Act, 1961

--Capital gains--Deduction under section 54 Deduction whether allowable where two separate flats purchased--Assessee sold an ancestral house property and offered long term capital gain after claiming exemption under section 54 in respect of purchase of two adjacent residential flats. Assessing officer was of the view that deduction under section 54 is allowable only for one residential house and not for more than one residential house. Commissioner (Appeals) held that since assessee had purchased two flats having adjacent kitchens and toilets which have a common meeting point, he was entitled to 100 per cent, deduction under section 54 for both the flats purchased by him. Tribunal held that even though flats are located at different floors, when they could be combined, it should be construed as a single residential accommodation only; Held: since assessee had purchased two flats having adjacent kitchens and toilets which have a common meeting point, he was entitled to 100 per cent, deduction under section 54 for both the flats purchased by him.

Income Tax Act, 1961 Section 54

In The Andhra Pradesh High Court

Goda Raghuram & M.S. Ramachandra Rao, JJ.

CIT v. Syed Ali Adil

ITTA No. 410 of 2012

20 December, 2012

Appellant by : B. Narasimha Sarma, Senipr Standing Counsel

Respondent by : None

JUDGMENT

M. S. Ramachandra Rao, J.

This appeal is filed under section 260A of the Income Tax Act, 1961 (for short 'the Act'), by the Revenue challenging the order dated 9-9-2011 in I.T.A. No. 284/Hyd/2011 of the Income Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad.