EXEMPTION U/S 54

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2009 any pls help in my case regarding the assessee had 2 houses, on which one is let out and another is self occupied. during the year 06-07 he sold let out property and claimed exemption u/s 54, on assessment ao didt allow us to claim exemption u/s 54 since the assessee already having one residential house and he cannot claim for another house

shakuntala chhangani

shakuntala chhangani (Expert)
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14 December 2009 Hi, there is no such condition u/s 54. As per sec. 54, an assessee can claim exemption if the following conditions are satisfied :
1) The assessee is an individual or HUF
2) The income of the residential property is taxable under"Income from House Property" whether sop or Let out Property.
3) The house property transferred is a long term capital asset.
The assessee has purchased/will purchase new property/s.
The codition which the AO is giving in ur case is of sec. 54F and not sec. 54. u can argue the same with him. Regards,
CA Shakuntala Chhangani

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2009 thanks for your kind repy
but AO want specific notification or circular in this case.
he also showing a circular no 207/24/76-IT(A) dt 25.03.1977 mentioning in case of assessee having more than one house and used both for residential purpose and not any other case
can you kindly let me know any case law in this case

shakuntala chhangani

shakuntala chhangani (Expert)
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18 December 2009 when specific section is there, where is the need for circular?He is showing u very old circular. ask him to give the reasoning in writing. Regards,
CA Shakuntala Chhangani

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