12 Points
Posted on 26 April 2010
Section 54 refers to reinvestment in "a" residential house. Experts have expressed contrary opinions on whether reinvestment in more than one house will qualify for the exemption. The Bombay Bench of the Tribunal, in K. G. Vyas vs 7th ITO (1986 16 ITD 195), had held that the assessee was entitled to the exemption in respect of reinvestment in more than one flat. Recently, however, the Mumbai Bench of the Tibunal, in Mrs Gulshanbanoo R. Mukhi vs JCIT (2002 83 ITD 649), held that the statute unambiguously provides for an exemption only in respect of one residential house and not many.