Capital gain on purchase of commercial property

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 January 2015 Dear sir
One of my customer has sold a herditary house property and then invested the whole amount is a commercial property. will this will get exemption from tax payment .The document of property purchased does not mention that it is commercial property. But mentioned only land and building. He has rented it out for keeping a godown.
kindly advise.

Amol S Joglekar

Amol S Joglekar (Expert)
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23 January 2015 The exemption is for purchase of Residential Property.
While stretching the imagination to other extreme, courts have given verdicts that the word residential should be construed as HABITABLE for residence.
If you are sure you can prove that your commercial premises is HABITABLE for residence, you may go ahead.

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