Exemption u/s 54
This query is : Resolved
18 December 2008
If an assessee has sold two residential flats (adjacent - used as one unit) and invested the sale proceeds towards purchase of two new residential flats (not adjacent), can the assessee claim expemtion u/s 54, in respect of investment in both the new flats?
Thanks & Regards,
NIki
Thanks & Regards,
NIki
18 December 2008
In my opinion exemption u/s 54 will be denied.
CA Tilak Raj Sharma
(Expert)
18 December 2008
You can purchase any number of residential houses. Exemption u/s 54 is not limited to one house only.
So u can enjoy the benefits of investments in both houses.
So u can enjoy the benefits of investments in both houses.
18 December 2008
Myself and Tilak differed in the opinion.
See also some judicial decisions.
1) Where the assessee purchases more than one house,then he can claim exemption in respect of one house. KC.Kaushik's case 185 ITR 499(Mum). I relay on this and gave the above answer.
2) Contrary view: There is no bar in acquiring more than one house out of proceeds of sale of a residential house. Refer 91 ITD 53 (Ban-Tri). Perhaps Tilak is relying on this decision.
See also some judicial decisions.
1) Where the assessee purchases more than one house,then he can claim exemption in respect of one house. KC.Kaushik's case 185 ITR 499(Mum). I relay on this and gave the above answer.
2) Contrary view: There is no bar in acquiring more than one house out of proceeds of sale of a residential house. Refer 91 ITD 53 (Ban-Tri). Perhaps Tilak is relying on this decision.
22 December 2008
Yes, the exemption may be claimed
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