Section 54 and 54f deductions

The Mumbai Special Bench's decision  in a case was

1. Exemption u/s 54 and/or 54F is allowable for one house only.
2. If assessee has purchased more than one house, choice will be with assessee to select on which house he wants to avail exemption u/s 54 and/or 54 F as the case may be.
3. If more than one unit are purchased and made into one unit for the purpose of residence, it will be considered as one house for claiming exemption u/s 54 and/or 54 F.
4. If floor is added to a new house , it remains one house , therefore exemption for both the new house and the house on added floor shall be taken together for claiming exemption u/s 54 and/or 54F.

so 54 & 54F can used for one house provded the taxpayer does not have another house and the House newly purchased kept for at least for 3 yeaars other wise the deductions will be reversed.

 

Assessee can claim exemption under both Sec. 54 & 54F for investment in same house .  

ITAT HYDERABAD BENCH ‘A’ Venkata Ramana Umareddy versus Deputy Commissioner of Income-tax IT Appeal No. 552 (Hyd.) of 2012 [ASSESSMENT YEAR 2008-09] Date of Pronouncement- 18.01.2013