25 December 2010
If the two flats are used as one single residential house, exemption u/s 54 is possible if reinvested in sigle residential property by virtue of a corollary to the Bangalore bench of the tribunal's decision in Dr. Anand Basappa Vs. ITO (2004) 91 ITD 53.
26 December 2010
It is a question of fact meaning thereby the assessee has to prove before a court of law with convincing documetary evidence that the situation warrented to break the wall so as to make it one house for the assessee's habitual use. As per my understanding, rent agreement will not suffice.
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