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| The Tax Publishers2020 TaxPub(DT) 4869 (Mum-Trib) : (2020) 208 TTJ 0949 INCOME TAX ACT, 1961
Section 54
Exemption under section 54 is granted to assessee for re-investment made in residential house. Section nowhere restricts the claim of assessee that he should have sold only one property and claimed exemption under section 54 for one property, therefore, assessee having sold two properties and re-invested in one residential house, was duly entitled for exemption under section 54.
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Capital gains - Exemption under section 54 - Assessee sold two properties and re-invested in one residential house -
Question arose for consideration was in case assessee sold two properties and re-invested in one residential house, whether he was entitled for exemption under section 54 or not. Held: Exemption under section 54 is granted to assessee for re-investment made in residential house. Section nowhere restricts the claim of assessee that he should have sold only one property and claimed exemption under section 54 for one property. In fact, prior to the amendment made in section 54 of the Act by Finance (No. 2) Act, 2014, which came into effect from assessment year 2015-16, the very same section provided for exemption even if assessee had re-invested in more than one residential house. It nowhere prohibited assessee to sell more than one residential house. In the instant case, assessee had sold two residential properties and re-invested in one residential property. Hence, entire conditions of section 54 both prior to amendment as well as subsequent to amendment, had been duly satisfied and assessee was duly entitled to exemption.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12
IN THE ITAT, MUMBAI BENCH
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