Sec 54

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Querist : Anonymous

Querist : Anonymous (Querist)

31 January 2013 Assesse having house property entered into a joint development agreement with Builder and he will get 10 flats as consideration but the flat will be allotted in different years. Whether he can claim deduction under 54 in each year. whether any caselaw available ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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31 January 2013 In my view he will get exemption U/s 54 in respect of 1 residential unit only, however bigger it can be.
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For all the independent units, it is not possible to get 54 exemption.
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CA Prashant Gupta

CA Prashant Gupta (Expert)
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01 February 2013 don't agree with CA Paras Bafna
in Act word is used "a residential house". but act doesn't mean a to one. it is any. as per CIT v D.Ananda Basappa(2009). it is cleared that a residential house is used in section 54 makes it clear that it was not the intention of the legislation to convey the meaning that it refers to a single residential house.
So you can get exemption on more than one house as per my view.
if house is constructed in 3 years of transfer of asset then it is allowed.

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