The Tax Publishers2020 TaxPub(DT) 5594 (Bang-Trib)

INCOME TAX ACT, 1961

Section 54F

Assessee was entitled for deduction under section 54F in respect of investment made in multiple flats to be considered as one residential house subject to production of relevant evidence before AO.

Capital gains - Deduction under section 54F - Whether all flats situated in single building be considered as single residential unit -

Assessee claimed that he had invested in single residential unit and was eligible for deduction under section 54F on the entire value of the building. AO held that as there were multiple residential units, assessee was entitled for deduction to the extent of value of only one residential unit. Held: Assessee was entitled for exemption under section 54F and all flats situated in single building to be considered as one residential house and deduction under section 54F is to be granted in view of decision held in case of Chandrashekar Veerabhadraiah [ITA No.2293/Bang/2019, Order dt. 7-12-2020 : 2020 TaxPub(DT) 5195 (Bang-Trib)].

Followed: Chandrashekar Veerabhadraiah v. ITO ITA No.2293/Bang/2019, Order dt. 7-12-2020 : 2020 TaxPub(DT) 5195 (Bang-Trib).

REFERRED : CIT v. KG. Rukminiamma (2011) 331 ITR 211 (Karn-HC) : 2011 TaxPub(DT) 429 (Karn-HC) and Chandrashekar Veerabhadraiah v. ITO ITA No.2293/Bang/2019, Order dt. 7-12-2020 : 2020 TaxPub(DT) 5195 (Bang-Trib).

FAVOUR : In favour of assessee.

A.Y. : 2006-07



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