From: CA. Rahul Bajaj <ca.rahulbajaj@gmail.com>
Assessee purchasing ground floor and first floor by two separate deeds - Held eligible for exemption under section 54F
As per the assessment order, the assessee, during the year, sold two commercial properties/capital asset. The assessee claimed deduction under section 54F of the Income Tax Act, for purchasing two residential units, in Group Housing Complex, Purva Parkridge. Bangalore.
The assessing officer observed that the property at IC-1 was purchased by the assessee on 14-10-2004, that it was an independent unit consisting of one bedroom, during room, hall, kitchen, toilet and servant room; that the property at IC-2 was separately purchased by the assessee on 15-10-2004; that this property was also an independent unit comprising two bedrooms, hall, kitchen and two toilets, that separate agreements were executed for both these properties; that as per the provisions of section 54F of the Act, deduction thereunder is to be allowed only for investment in one housing propety and not for a number of properties; that according to the proviso to sectn 54F of the Act, if the assessee purchases/constructs any residential house, other than a new asset within a period of one/three years after the date of transfer of the original asset and the income from such residential house other than the one owned on the date of transfer of the original asset, is chargeable as income from house property, no deduction under section 54F is allowable; that in the assessee's case, initially, the deduction was available only for investment made for purchase/construction of property No. IC-1 for the purchase on 14-10-2004, that however, since the assessee had, within the period of one year, i.e., on 15-10-2004 (wrongly mentioned in the assessment order as 15-10-2004), purchased another flat in the housing society and the income from the said residential house was chargeable as income from house property, no deduction under the said section was available.
Held : The Commissioner (Appeals) while allowing the appeal of the assessee, held that what the assessee had was, in fact, one residential unit and not two, making the assessee eligible for claiming deduction under section 54F of the Act; and that even if it were to be held otherwise, i.e., that there were two different residential units, the assessee would be eligible for deduction under section 54F of the Act, since both these units were adjacent to each other, being ground floor and the first floor of the same premises. The Commissioner (Appeals) was justified. - Vide Asstt. CIT v. Sudha Gurtoo - ITA No. 939/Del/2010 - Delhi ITAT Order.
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warm regards,
CA. Rahul Bajaj
Partner - M/s. Rahul Bajaj & Co.
Chartered Accountants
B-4, Anudeep Park,
Nr Tupsakhare Lawns, Tidke Colony,
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Call @ 91-253-2314120, 9371114120
Sir, Whether 54F exemption on the basis of investment in one residential house can be claimed on the sale of multiple long term capital assets? My client has sold 2 plots and invested in one flat. I have apportioned the long term gain between the 2 assets. The section does not specifically mention more than one long term capital asset situation. Is there any case or reference which expressly allows multiple long term capital gain for 54F exemption in view of certainty of our claim? CA. Kalyan Vennety, ca.vkalyanc@gmail.com
ReplyDeleteSIR PLEASE HELP ME OUT.
ReplyDeleteI ENTER INTO AN AGREEMENT FOR PURCHASE OF A RESIDENTIAL HOUSE ON JUNE 2011.
THEN ON JULY 2011 I PAID 80% OF THE AGREED PRICE.
I WANT TO TAKE THE REGISTRY OF THE FLAT ON JULY 2012 BY PAYING ADDITIONAL 20%.
THEN ON DECEMBER 2012 I WANT TO SALE THE LAND AND WANT TO CLAIM EXEMPTION UNDER SEC 54F.
IS THIS POSSIBLE.
Sir I needed your help.
ReplyDeleteOn the sale of a commercial property that was held in the joint names of 4 family members and a HUF, LTCG was realized. Can the 4 family members anf the HUF purchase a common property of the entire consideration and can all 4 family members and the HUF claim relief under section 54f.