Deduction u/s 54

This query is : Resolved

Naresh (Querist)
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01 November 2010 The Assessee had a residential ownership flat in Mumbai since past 10 years. This Flat is sold in the current accounting year. 10-11 .

1)Long term gain after considering cost inflation index is calculated.

2)The Assessee has now purchased a new Tenanted place ( Pagdi System) and has paid the amount out of the Capital Gains by cheque
3)Stamp duty as per Stamp Duty Act is paid
4)The Document is registered
5)The Agreement with landlord says that this tenanted place is for residential purposes only.
6)Whether the amount paid for the purchase of the Residential Tenanted Property (Paghdi System) will be eligible for Deduction u/s 54?
Your opinion will be highly appreciated.

venkatraman shrinivas

venkatraman shrinivas (Expert)
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02 November 2010 Unless the title (mutation) is transferred absolutely with power of disposition (right to alienate), exemption under section 54 cannot be claimed. The assessing Officer would perforce reject it.