31 January 2015
Dear Experts, A person sold his vacant land which is a long term capital asset in 2012. he spent all his sale consideration in buying 10 flats in same apartment.. all this took place in 2012..
30 January 2013 We claimed exemption u/s54f for all 10 flats.. by referring to case CIT vs smt k g Rukminiamma case. now Dept sent a notice that we can claim only for 1 unit.. Which on is correct? please suggest another case law.. please provide Ur Opinion..
31 January 2015
If you read the case study carefully Exemptions was taken u/s 54 not under section 54F till high court
Further If all the 10 Flats are covered as mutlistories under the same area than all flats would be considered as one Residential unit otherwise benefit of only one would be given.
I have one Commercial Plot and One Residential House. I sold the Commercial Plot and I purchase a One Plot in Residential Area and give a contract to a builder to costruct 10 Flats for me the cost of construction is equal to the Sale Consideration.
Then all Flats built up on this plot are convered by Exemption u/s 54F. Here it will be persumed that all flats are one Residential House.
In another Case If I purchase 2 Plots at different Area in the same Apartment and give contract to a builder to construct 5 Flats on both the Plots. Now exemption would be available only for Five Flats made on one of the plot by considering Section 54F.
Hopefully you must have understood what I am Saying Plz reply if understand
31 January 2015
it will take only one house exemption. if it is construction in multiple plot but it is one unit then you take exemption as one unit otherwise not allowed
CAclubindia
