Tax Exemption u/s 54 for One Residential House Only

Last updated: 25 September 2007

Court :
IN THE INCOME TAX APPELLATE TRIBUNAL

Brief :
Exemption under sections 54 and 54F of the Act would be allowable in respect of one residential house only. If the assessee has purchased more than one residential house, then the choice would be with assessee to avail the exemption in respect of either of the houses provided the other conditions are fulfilled. However, where more than one unit are purchased which are adjacent to each other and are converted into one house for the purpose of residence by having common passage, common kitchen, etc., then, it would be a case of investment in one residential house and consequently, the assessee would be entitled to exemption. (Para 11)

Citation :
ITO, Ward-19(3)-4, R.No.304, 3rd Floor, Piramal Chambers Lalbaug, Mumbai - 400 012 Vs Ms. Sushila M. Jhaveri, 801/802, Coste Belle, 687, Perry Cross Rd. Bandra (W), Mumbai - 400 050 PAN - J.C/S.R.9/201-A/S