Exemption u/s 54 f

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Shashikant (Querist)

09 November 2011 I have sell a commercial property (assuming Rs. 100) and purchase two Residential property which are in 101-102. the registry is separate but house are at one wall. Now we can claim Exemption for both property.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

09 November 2011 House are at one all means only one kitchen is there.

If it can be shown that the purchased property is a single residential unit, and the assessee is not having more than one residential other than this property, then deduction can be claimed.

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Shashikant

Shashikant (Querist)

19 November 2011 Please refer any case study for this entitlement.

Thanks,

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

21 November 2011 You may refer the case of Hansa Bai Sanghi V ITO[2004] 89 ITD 239 (HYD.)

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It was decided in this case that where an assessee purchases ground floor and later when the vendor builds Ist Floor, the same was purchased by a separate sale deed by the assessee. The court rejected the view of the AO who was of the opinion that section 54F(2) is attracted.

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