Section 54F Deduction: 'Residential House' vs 'Residential Unit'

Quick Summary

The Income Tax Appellate Tribunal (ITAT) has clarified the interpretation of 'a residential house' under Section 54F of the Income Tax Act. The Assessing Officer (AO) rejected the assessee's claim for deduction, arguing that a gifted property comprising multiple units (garage, 1BHK flats, single rooms) constituted more than one 'house'. The ITAT's decision hinges on whether these individual units qualify as separate 'residential houses' for the purpose of the deduction, which is disallowed if the assessee owns more than one such property.

Court :
ITAT Bangalore

Brief :
The appeal filed by the assessee is directed against the order dated 29-11-2019 passed by Ld CIT(A)-7, Bengaluru and it relates tothe assessment year 2015-16. The solitary issue urged in this appealis whether the Ld CIT(A) was justified in rejecting the claim for deduction u/s 54F of the Income-tax Act,1961 ['the Act' for short].

Citation :
ITA 194/BANG/2020

Daily Limit Reached