18 November 2009
I OWN A HOUSE WHICH IS INHERITED BY ME FROM MY FATHER MANY YEARS AGO. SAY 1980. I SOLD THE SAME HOUSE IN TWO BITS. I HAVE BEEN SHOWING THE RENTAL INCOME ON THE SAME AS INCOME FROM HOUSE PROPERTY AND HAVE BEEN FILING THE RETURNS OF INCOME SINCE LAST 10-15 YEARS. THE HOUSE IS OLD AND THE BUYER DIDNT WANT THE HOUSE AND SO HE DEMOLISHED THE HOUSE BEFORE REGISTRATION AND REGISTERED THE SAME. THE DOCUMENT REGISTERED SAYS THAT VACANT SITE OBTAINED BY DEMOLISHING THE BUILDING IS REGISTERED. I PURCHASED ANOHTER HOUSE IMMEDIATELY AFTER THE SALE BY INVESTING THE FULL SALE VALUE. I WANT TO KNOW WHETHER I CAN EXEMPTION UNDER SECTION 54? I CANNOT GO FOR SECTION 54F AS I ALREADY OWN TWO MORE HOUSES.
18 November 2009
Exemption u/s 54 will not be allowed because sale deed is for vacant land though there is a mention of the then building. As u know, the section is applicable to building and land appurtenant thereto which is used for residential purpose which is lacking in the given issue.
Citation :- M.Anil Vs. ITO (2008) 19 SOT 655 (Coch-Trib)
19 November 2009
Thank you Mr.Chakrapani Warrier. But when I sold, it is a building and the agreement for sale also quotes the same. Until the time I sold, I have been showing the rental income from the same as income from house property. The sale document also quotes as vacant site obtained by demolishing the building. Can I contest on this ground with the assessing officer? Can I go for SEc 54F when I already own two one more house, which I sold in the same year and bought two more new houses other than the one mentioned above.
CAclubindia
